Gold prices in the international market took a hit on Monday, March 20, with their appeal as a safe-haven diminishing. The price drop comes in the aftermath of Swiss lender UBS finalising the deal to buy Credit Suisse. Following the global trend around gold rates, the price of the precious metal also slipped in the morning trading session in Dubai today. The cost of one gram of 24-carat variety tumbled by Arab Emirati Dirham (AED) 0.75 or Indian Rupee (INR) 16.84. It stood at Dh 239.25 or Rs 5,374.53. Meanwhile, a gram of the 22-carat type of gold fell by Dh 1.5 or Rs 33.69, retailing at Dh 221.5. That is equal to Rs 4,975.85 today.
Data furnished by the Gulf Tiger’s Gold and Jewellery Group, the per gram cost of 21-carat gold also fell by Dh 1.5. It retailed at Dh 214.5 or Rs 4,818.47 on March 20. The price of the 18-carat variety fell by Dh 1 or Rs 22.45. It retailed at Rs Dh 184 or Rs 4,130.8.
The per-ounce price of gold slipped by Dh 47.71 or Rs 1071.08, standing at Dh 7,255.59 or Rs 1,62,887.99.
Dubai, renowned as the City of Gold, presents a diverse selection of gold designs for potential buyers. The UAE capital boasts several prominent markets solely dedicated to the sale of gold jewellery and other gold products, with Baniya Street, Gold Souq, and Meena Bazaar proving especially popular among Indian customers.
Dubai’s gold prices remain highly competitive globally, largely due to the UAE government’s lenient taxation policy. Raw gold materials, such as gold bars, are not subject to any charges. However, a value-added tax of 5 per cent applies to all other gold articles.
By comparison, India imposes multiple taxes on physical gold, including import duty, GST, Agriculture Infrastructure Development Cess, and TDS.
Foreign visitors can purchase gold jewellery at even more reasonable prices in Dubai, bypassing the VAT by declaring themselves foreign passport holders. Moreover, given the availability of inexpensive labour, bargaining on the making charges can further reduce the price of gold items.
Despite the favourable purchase rates offered by Dubai, importing gold from the city to India is disadvantageous due to the Indian population’s profound affinity for gold, which negatively impacts the country’s balance of costs.
To address this issue, the Indian government has imposed numerous levies on gold transactions exceeding the permissible limit, including a social welfare tax and additional import duties. These levies increase costs for individuals seeking to profit from purchasing and reselling gold in India.
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