The price of gold in Dubai jumped in the morning trading session on Monday, February 6. In response to sentiment around the non-yielding asset getting stronger in the international arena, the cost of the precious yellow metal rose in the United Arab Emirates (UAE).
The price of 24-carat gold inched up by Arab Emirate Dirham (AED) 1.75 or Indian Rupee (INR) 39.28 per gram. One gram of this type retailed at Dh 227.5 or Rs 5,106.24. According to Gold and Jewellery Group’s data, one gram of 22-carat gold in the UAE was also up by Dh 1.75, trading at Dh 210.75 or Rs 4,730.43.
The price of the 21-carat variety for the same quantity rose by Dh 1.5 or Rs 33.71. This variety traded at Dh 204 or Rs 4,585.35. In the morning trading session on Monday in the UAE, the 18-carat gold rates shot up by Dh 1.25 or Rs 28.05 per gram and stood at Dh 174.75 or Rs 3,922.77.
The price of an ounce of gold in Dubai moved up by Dh 51.38 or Rs 1,153.37 to trade at Dh 6,895.93 or Rs 155,003.04. On the other hand, a kilogram of silver cost Dh 2645.18 or Rs 59,382.66 in Dubai.
Every year, thousands of people throng to Gold Souq, Baniya Street, and Meena Bazaar. These markets in the City of Gold are popular destinations, especially among Indians, to purchase the precious metal. People prefer buying gold from Dubai due to the low rates and quality assurance.
The price of gold is one of the lowest in the world, primarily due to the UAE government’s liberal taxation policy on it. While purchasing gold bars is tax-exempt, gold jewellery and other articles attract a low value-added tax (VAT) of 5 per cent. Even this is waived off for foreign passport holders, making their gold purchases in the country essentially tax-free.
Additionally, people can lower the cost of gold jewellery by negotiating heavily on the making charges. This is possible due to the availability of cheap labour in Dubai.
Although by buying precious metals in UAE, one can save a lot on taxes, such is not the case when one tries to import this gold into India. There are several taxes and duties levied on bringing in gold above the prescribed limit from Dubai.
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