Dubai Gold Rates: Price Soars In UAE As US Dollar Takes Hit

International gold prices noted a hike on Thursday, March 24, following the US dollar hitting a 7-week-low. The US Federal Reserve hiking the interest rate spurred this movement. In Dubai, which follows international gold prices, the morning trading session saw the cost of all varieties of the precious metal inch upwards. A gram of 24-carat gold in the Gulf Tiger shot up by 4.25 Arab Emirates Dirham (AED) or Indian Rupee (INR) 95.07 to reach Dh 239.5. As per the exchange rate on Thursday, this is equivalent to Rs 5,358.

Dubai Gold and Jewellery Group stated that the price of the 22-carat variety of gold rose by Dh 4 in the same session. This type of the yellow metal retailed at Dh 221.75 or Rs 4,961.85. The cost of 21-carat gold noted a similar climb. It traded at Dh 214.75 or Rs 4,806.18. The price of 18-carat gold went up by Dh 3.25 or Rs 72.73. It traded at Dh 184 or Rs 4,118.14 per gram.

Dubai, known as the “City of Gold,” is renowned worldwide for its stunning gold markets that offer customers an exquisite selection of unmatched designs. Whether it’s the bustling Meena Bazaar or the grandeur of the Gold Souq, the city has become a gold lover’s paradise. Moreover, Dubai’s highly competitive gold rates in the global market are a significant attraction for many buyers.

In the UAE, taxes are not imposed 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 take advantage of a tax-free shopping experience by simply presenting their passports. This exemption means that all their gold purchases in the country are free from any charges. In addition, the availability of inexpensive labor in Dubai provides a broader bargaining margin on making charges, further reducing the price of gold items.

However, India is taking steps to curb the massive gold imports from Dubai. A large amount of gold coming in from the middle Eastern city could lead to an unfavourable balance of payments. The Indian government has imposed several taxes and surcharges on gold imported from Dubai, including social welfare taxes and additional import duties. These measures are intended to ensure that India’s economy remains stable and sustainable in the face of fluctuating global gold prices.

Read all the Latest Business News here