Dubai gold rate gains Dh4 - shoppers switch to 'light' jewellery before holiday trips

Dubai: The Dubai gold rate has shot up to Dh373 from early yesterday’s Dh369 a gram level for 22K even though all trends suggest there should be some softening of prices. The local price had been stuck at Dh369 levels for the past 4 days, including over the weekend period.

The latest increase will make UAE shoppers cautious, especially those expats who have plans to buy ahead of their summer holiday trips back home.  

When it comes to Indian expats in the UAE making last-minute pre-travel gold shopping, there is a clear trend that’s showing up. (In India, the price of 1 'tola' of 22K gold is around Rs108,824. One tola is around 12 grams. One dirham fetches 23.22 Indian rupees currently.)

“Possibly for the first time in UAE summer sales, Indian expats are showing a preference to buy lighter gold jewellery that they can sell when they reach India,” said Shamlal Ahmed, Managing Director – International Operations at Malabar Gold & Diamonds. “Until now, the preference had been heavy jewellery, which they would buy here and sell or gift in India. And they always had a hefty price advantage.”

But that’s changed. This is because India had slashed import duties on gold from 15% to 6% in July last year as part of the then budget. But by then, many shoppers in the UAE, Saudi Arabia and other Gulf markets had already bought their gold before the summer breaks and trips.

Which is why the real impact of that duty cut is being felt in this summer’s gold demand among Indian expats. “With that 9% price advantage gone after the duty slash to 6%, shoppers feel they are better off taking lighter jewellery, whether plain gold or studded pieces.

“There’s less scrutiny by customs authorities when the traveller is taking lighter gold pieces.”

Plus, it is also easier given that India only allows up to 20 grams for men (or a value of Rs50,000) and 40 grams (up to Rs100,000) for women.

"Gold prices have gone through multiple highs in the first 6 months of 2025," said a gold retailer. "Indian customs authorities are also being strict on what a traveler to India is bringing as gold. In these circumstances, going for lighter jewellery makes sense - if the expat is intent on selling it in India."