Dubai’s gold prices held steady in the morning trading session on Wednesday, March 15. Despite no change in the cost of the precious metal for Arab Emirati Dirham (AED) traders, Indian Rupee (INR) holders could experience price fluctuations due to currency exchange rate changes.
24-carat gold maintained its value at Dh 230.5 or Rs 5,175.46 per gram.
Meanwhile, the 22-carat variety of gold sold for Dh 213.25 or Rs 4,787.95 per gram.
According to data from the Gulf Tiger’s Gold and Jewellery Group, the cost of 21-carat gold per gram was Dh 206.5 or Rs 4,636.4 in the UAE. The 18-carat variety of the precious metal retailed for Dh 177 or Rs 3,974.06 per gram.
The per-ounce price of gold remained unchanged, standing at Dh 6,984.01 or Rs 156,800.21.
Dubai, widely known as the City of Gold, provides a plethora of designs for gold buyers to choose from. The capital city boasts several large markets solely dedicated to the sale of gold jewellery and other gold items. Among them, Baniya Street, Gold Souq, and Meena Bazaar are popular among Indian customers.
Dubai’s gold prices remain one of the most competitive globally, owing to the UAE government’s lenient taxation policy. They do not impose any charges on raw gold materials such as gold bars. However, a value-added tax of 5 per cent applies to all other gold articles.
By contrast, India levies multiple taxes, including import duty, GST, Agriculture Infrastructure Development Cess, and TDS on physical gold.
Tourists can purchase gold jewellery at even lower prices in Dubai, avoiding the VAT by declaring themselves as foreign passport holders.
Bargaining on the making charges can also further reduce the price of gold items, given the availability of cheap labour in Dubai.
Despite offering favourable purchase rates compared to other countries, importing gold from Dubai to India is disadvantageous due to the Indian population’s affinity for gold, which has a detrimental impact on the country’s balance of payments.
To mitigate this issue, the Indian government has imposed several levies on gold transactions exceeding the permissible limit, including a social welfare tax and additional import duties. These levies increase costs for individuals looking to profit from purchasing and reselling gold in India.
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