Gold prices in Dubai recorded a marginal drop as the market opened in the morning trading session on Monday, March 27. The price trends followed global trends caused by the sudden collapse of two US banks, leading to panic in the market. The prices of gold in Dubai and UAE dropped by half a dirham across the different types of the precious yellow metal. The prices, for Indian buyers, however, received some stability after a minor gain in INR’s value against Dirham.
In the UAE, 24-carat gold opened half a dirham lower at Dh 239.0 on Monday morning. As per the exchange rate on Monday, this is equivalent to Rs 5359.69.
According to the data provided by Dubai’s Gold And Jewellery Group, 22-carat gold traded at Dh 221.25 or Rs 4963.80. The rates for the 21-carat gold stood at Dh 214.25 or Rs 4806.75. One gram of 18-carat gold traded at Dh 183.5 per gram or Rs 4116.87.
An ounce of gold in Dubai traded at 7,244.58 dirhams or Rs 1,62,492.89.
Concerns over turmoil in the global banking sector have somewhat eased as authorities around the world have attempted to assuage investor fears of a widespread crisis.
Earlier this month, the US dollar hit its highest level since November. But investors’ concerns over the stability of US banks triggered a sharp reversal in the marquee currency.
Dubai is known as the City of Gold as it boasts of gold markets that offer customers an exquisite selection of unmatched designs. The city’s bustling Meena Bazaar and the Gold Souk markets are famous for their grandeur.
Furthermore, buyers are attracted to Dubai due to the highly competitive gold rates. It is worth noting that taxes are not imposed on raw materials such as gold bars or ingots in UAE. For jewellery and other articles, the value-added tax stands at just 5 per cent. Dubai is the preferred destination for foreign tourists looking to buy gold. They can get a tax-free shopping experience by simply presenting their passports. This exemption essentially means that all their gold purchases in the country are free from any charges.
India is taking steps to curb gold imports from Dubai as a large amount of gold coming in from the UAE could lead to an unfavourable balance of payments. The Government of India poses restrictions on the quantity of gold an Indian can bring in for Dubai. An attempt to exceed the limit may result in fines and other legal actions.
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