Last Updated: March 22, 2023, 15:10 IST
The United Arab Emirates, which follows international gold prices in its retail markets, has seen several rate changes in the past week. Investor sentiment associated with banking sector fragility significantly influences the cost of the precious yellow metal. During the morning trading session on March 22, the price of a gram of 24-carat variety crept slipped by Arab Emirati Dirham (AED) 1.75 or Indian Rupee (INR) 39.38. Dubai Gold and Jewellery Group’s information suggests that the price tag for a gram of this variety was Dh 234.75 or Rs 5,282.8. One gram of the 22-carat type noted a price drop of Dh 1.5 or Rs 33.75. It traded at Dh 217.5 or Rs 4,894.45.
As of 11:15 am, the price of 21-carat gold, too, had fallen by Dh 1.5. It retailed at Dh 210.5 or Rs 4,736.93. Rates of the 18-carat variety slipped by Dh 0.75 or Rs 16.87. A gram of this type retailed at Dh 180.5 or Rs 4,062.25 on March 22. An ounce of gold in the Gulf Tiger cost Dh 7,119.80 or Rs 160,223.1.
The price of a kilogram of silver on Wednesday, March 22, was Dh 2639.9 or Rs 59,412.69.
Dubai, known as the City of Gold, is famous worldwide for its vast array of stunning gold markets. From the bustling Meena Bazaar to the grandeur of the Gold Souq, customers are treated to an exquisite selection of unmatched designs. However, the most attractive aspect is Dubai’s highly competitive gold rates in the global market. In the UAE, taxes are not levied on raw materials such as gold bars or ingots, and even for jewellery and other articles, the value-added tax stands at a mere 5 per cent.
Foreign tourists visiting the country can benefit from a tax-free shopping experience by simply presenting their passports. This waiver makes all of their gold purchases in the country exempt from any charges. Additionally, the availability of inexpensive labour in Dubai provides a broader bargaining margin on making charges, which further reduces the price of gold items.
India, the world’s largest consumer of gold, is taking steps to curb massive gold imports from Dubai, which could lead to an unfavourable balance of payments. To this end, the Indian government has imposed various taxes and surcharges on gold brought from Dubai, including social welfare taxes and additional import duties. These measures have been taken to ensure that India’s economy remains stable and sustainable in the face of fluctuating global gold prices.
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