Also known as the City of Gold, Dubai is the preferred destination for people looking to buy gold across the globe.
One gram of 22-carat gold also remained stable, trading at Dh 220.50 or Rs 4908.33.
Gold prices in Dubai remained stable on Wednesday, March 29, despite a negative movement in the international market. Spot gold was trading at $1966.48 per ounce, following a drop of 0.4 per cent as of 0356 GMT. The prices of gold in UAE got cheaper for Indian buyers with INR getting stronger against Dirham.
As per the latest conversation rates, one Dirham was equal to Rs 22.26. According to data provided by Dubai’s Gold And Jewellery Group, one gram of the superior 24-carat gold traded at Rs 238 or Rs 5297.88 in the morning trading session.
One gram of 22-carat gold also remained stable, trading at Dh 220.50 or Rs 4908.33. The same was the case with a 21-carat variety of gold and it was available for Dh 213.25 or Rs 4746.95 for every gram. The price of 18-carat gold stood at 182.75 Dh or Rs 4,068.01.
An ounce of gold in Dubai would cost buyers 7,215.22 Dh or Rs 1,60,610.80. The price of one kg of silver on March 29 was 2742 Dh or Rs 61,036.9.
Also known as the City of Gold, Dubai is the preferred destination for people looking to buy gold across the globe. The price of gold in Dubai and UAE follows the international market, offering buyers better rates than most countries. What makes gold cheaper in Dubai is UAE’s relaxed taxation policy for the precious metal.
The country doesn’t impose any tax on raw materials such as gold bars and ingots. For jewellery and other articles too, there are only 5 per cent value-added tax stands which is much lower than any most countries in the world.
Additionally, foreign tourists can be exempted from paying this 5 per cent VAT simply by declaring their foreign passports. The availability of cheap labour allows for a wider bargaining margin on making charges, further reducing the price of gold items.
However, it is not the lower prices that make Dubai a preferred destination to buy gold. The city has a highly regulated market that ensures better quality for gold to buyers. Further, there’s a vast range of designs to choose from.
While all these factors make Dubai a go-to destination for buying gold, it must be noted that the government of India has capped the quantity of gold an individual can bring in from the city. This is done to curb massive imports which may lead to an unfavourable balance of payment.
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