Last Updated: January 20, 2023, 11:53 IST
The cost of gold in Dubai remained unchanged on January 20, in the morning trading session. Although the price of the precious metal recorded no movement from yesterday’s level for those trading in Arab Emirates Dirham (AED), holders of the Indian Rupee (INR) will see a change in the per gram cost due to fluctuations in the exchange rate between AED and INR. As of 10:25 am on Friday, Dh 1 was valued at Rs 22.12.
According to Gold and Jewellery Group’s data, the gram of 24-carat gold in the Gulf Tiger cost Dh 231.75 or Rs 5,127.27. The price of the 22-carat variety for the same quantity was Dh 214.5 or Rs 4,745.64. The rate of 21-carat and 18-carat gold in the morning trading also remained stagnant. While a gram of 21-carat gold cost Dh 207.75 or Rs 4,596.63, the price of 18-carat gold stood at Dh 178 or Rs 3,938.38. An ounce of the yellow metal in the City of Gold cost Dh 7,024.38 or Rs 155,414.92.
Gold purchases have traditionally been considered an important investment in several cultures. This is especially true of India, where occasions such as Diwali, Dhanteras, and weddings are considered auspicious times to buy gold. Gold markets such as Meena Bazaar, Baniya Street, and Gold Souq in Dubai see a spike in sales around the Hindu festive and wedding seasons due to this. The city is a popular spot for purchasing gold since it offers a wide variety of designs, quality assurance, and low prices.
The safety assurance comes from the market being extremely well-regulated and monitored, with frequent inspections and laws in place mandating shopkeepers to keep hallmark certifications of the items they are selling. The low prices, on the other hand, are a courtesy of the UAE government levying a nominal 5 percent Value Added Tax (one of the lowest in the world) on jewellery, and even waiving that charge for tourists if they present their passport. Buying gold ingots is tax-free. Another factor that filters into the cost analysis is the margin of negotiation available in Dubai on making charges.
While these conditions are favourable for purchasing gold in Dubai or UAE, such is not the case for bringing the precious metal into India. Considering gold imports causing an unfavourable balance of payments, the Government of India has levied several duties and charges on importing gold from abroad.
Read all the Latest Business News here