The price of gold in Dubai jumped in the morning trading session on Tuesday, February 14. In response to sentiment around the precious yellow metal becoming slightly more positive in the international arena, the cost of 24-carat gold in the United Arab Emirates (UAE) inched up by Arab Emirate Dirham (AED) 0.25 or Indian Rupee (INR) 5.62 per gram. A gram of this variety retailed at Dh 225 or Rs 5,066.39. According to Gold and Jewellery Group’s data, one gram of 22-carat gold in the UAE was also up by Dh 0.25, trading at Dh 208.5 or Rs 4,695.16.
The rate of 21-carat gold also jumped by a quarter of a Dirham to stand at Dh 201.75 or Rs 4,543.13. In the morning trading session on Tuesday in the UAE, the 18-carat gold rates shot up by the same amount as all the other varieties. A gram of 18-carat gold stood at Dh 173 per gram, or Rs 3,895.69.
On the other hand, a kilogram of silver cost Dh 2595.36 or Rs 58,441.12 in Dubai.
UAE gold is cheaper and considered to be of high quality compared to other countries. Dubai’s gold markets attract thousands of buyers every year due to these reasons and the wide variety of designs available in these markets. Indians especially prefer Gold Souq, Baniya Street, and Meena Bazaar.
The reason for the cheaper rates of the precious metal in the UAE primarily relates to the government’s taxation policy. Buying gold ingots is tax-exempt for everyone in the country. Other gold purchases attract a low value-added tax of 5 per cent. This charge is waived for those who can declare that they are foreign passport holders. This makes tourists’ purchases of gold in Dubai essentially tax-free.
This might present an attractive prospect for importing gold from the UAE to India for many people. However, due to rising gold imports, the Indian government has levied taxes and duties on bringing in gold from abroad over a certain limit. These charges bring the price of imported gold on par, or even higher than in India.