The price of gold in the United Arab Emirates (UAE) fell by a small margin in the morning trading session on Thursday, February 23. This is reflective of a global negative sentiment around the precious yellow metal. In Dubai, the City of Gold, the price of the 24-carat variety dropped from Arab Emirati Dirham (AED) 1.25 or Indian Rupee (INR) 28.16. On Thursday. One gram of this variety traded at Dh 221.5 or Rs 4,991.6. The price of 22-carat gold slipped by Dh 1 or Rs 22.53, trading at Dh 205.25 or Rs 4,625.86.
According to the updated prices provided by the Dubai Gold and Jewellery Group, the price of a gram of 21-carat gold, too, fell by Dh 1. It traded at Dh 198.5. According to today’s exchange rate, this amounts to Rs 4,473.73. The 18-carat variety of the bullion fell by Dh 0.75 or Rs 16.9 per gram. It traded at Dh 170.25 or Rs 3,837.01. The price of an ounce of gold, down by Dh 33.03 or 744.4, traded at Dh 6,716.1. This is equivalent to Rs 151,366.51. A kilogram of silver in the country cost Dh 2556.98 or Rs 57,625.49 on Thursday.
The prices of gold in Dubai follow the real-time international movement in rates of the precious yellow metal. They are updated thrice a day, with the first price change announcement coming around 10.30 AM IST. The Gulf Tiger is known for having one of the most competitive gold prices in the world today. The precious metal is available at a much lower rate here due to the UAE’s government subjecting it to little to no taxation. For instance, gold bar purchases are tax-exempt, while buying gold jewellery and other items attracts a low value-added tax (VAT) of 5 percent. Even this charge is waived for foreign passport holders. In essence, this means that all gold purchases made by foreign tourists are tax-free in Dubai. The availability of cheap labour in the UAE also allows people to negotiate rather heavily on making charges for the articles they are buying.
This is not the only thing that attracts dozens of buyers to the capital city, though. There is a wide variety of designs available in markets such as Gold Souk, Meena Bazaar, and Baniya Street. There is robust quality assurance as well since the Dubai Municipality regularly carries out inspections to ensure quality standards are maintained. Buyers can ask to see the gold’s purity certificate, which the shopkeeper is mandated by law to show when requested.
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