Gold prices in the United Arab Emirates (UAE) were in a downtrend during the morning trading session on Monday, March 6th.
Prices for the purest 24-carat variety of the precious yellow metal fell by 0.5 Arab Emirates Dirham (AED) or Indian Rupee (INR) 11.13. The exchange rate per gram of this gold is 224.5 dirhams or 4,999.63 rupees. This reflects a changing global perception of the value of gold.
Prices for the 22-carat variety fell by AED 0.25 or Rs 5.56 per gram to AED 208 in Dubai, according to data provided by the Dubai Gold and Jewelry Group.
At this morning’s exchange rate, this equates to Rs 4,631.7. One gram of 21-carat gold traded at AED 201.25 or Rs 4,481.94 on Monday. This is also a price drop of Dh 0.25. The price of 18-carat gold also saw a similar drop, trading at AED 172.5 or Rs 3,841.68.
A kilogram of silver in the UAE was priced at AED 2,512.74 or Rs 55,958.34 on Monday.
Thanks to the generous tax policies of the UAE government, Gulf Tiger offers its customers one of the lowest gold prices in the world.
Buying gold bullion (gold bars) in Middle Eastern countries is tax-free. For all other gold items, customers must pay 5% Value Added Tax (VAT). This is one of the lowest tax rates for precious metals in the world. This VAT applies to UAE citizens only. Tourists are exempt from this fee by simply declaring their foreign passport.
The price of gold jewelry and other such items can also be reduced by negotiating manufacturing charges. There is greater room for bargaining here due to cheap labor in Dubai.
While buying gold in Dubai is more profitable than in other countries, the same is not the case for importing gold. Indians’ love of gold is known to have an adverse effect on the country’s balance of payments.
In order to curb imports from Dubai, the Indian government has laid out several charges.
Social welfare taxes and other import duties on precious metals have raised costs for those who want to buy gold from Dubai and sell it in India for a profit.
These fees apply to the amount of gold in excess of the allowable amount.
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First published: March 6, 2023 at 12:54pm EST
Last updated: March 6, 2023 at 12:54pm EST