Last Updated: April 11, 2023, 12:45 IST
The price of gold in Dubai declined marginally on March 31. One gram of 24-carat gold fell 0.25 Arab Emirates Dirham (AED) or Indian Rupee (Rs 5.59) to reach Dh 239.75 (Rs 5,365.94) in the afternoon session. The value of one gram of 22-carat also declined by Dh 0.25 to Dh 222.25 or Rs 4,974.64. The gold prices in Dubai are influenced by the international market and the value of the precious metal has been fluctuating over the past few days due to the drop in the dollar index and other global factors.
According to the Dubai Gold and Jewellery Group, the rate of one gram of 21-carat gold fell by Dh 0.25 as well to settle at Dh 214.75 ( Rs 4,806.95). The price of one gram of 18-carat gold remained unchanged at Dh 184.25, which is equivalent to Rs 4,123.88.
Dubai, also called the “City of Gold”, is known globally for its stunning gold markets that offer consumers a huge range of exquisite jewellery designs. The city’s competitive gold rates in the global market and the presence of markets such as the Gold Souq or Meena Bazaar have made it a gold-lover’s paradise. The retail prices in Dubai fluctuate with changes in the international bullion market.
The United Arab Emirates does not impose taxes on raw materials like gold bars or ingots. The value-added tax (VAT) for jewellery and other articles stands at 5 per cent, meaning foreign tourists can enjoy hassle-free and pocket-friendly shopping excursions just by presenting their passports. Inexpensive labour in Dubai also reduces gold rates, as it results in a broader bargaining margin as far as making charges is concerned.
A large amount of gold coming in from abroad can lead to an unfavourable balance of payments. This is why the Indian government has been taking steps to curb gold imports from Dubai. India imports most of its gold supply due to a lack of natural reserves in the country. To keep its economy resilient in the face of the fluctuating gold rates, the Indian government imposes several taxes and surcharges, including additional import duties, on the precious yellow metal imported from Dubai.
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