UAE gold prices inch closer to Dh160 a gram

Dubai: Gold prices in the UAE are 25 fils away from touching Dh160 a gram after international bullion prices continued their steep climb for a second consecutive day. The actual cost to the shopper today (Friday) would be Dh167.75 a gram, which includes Dh8 VAT (value added tax).

Thursday's gold price was set at Dh156.75, which itself came after an overnight Dh4 a gram spike.

In the UAE, the VAT is calculated based on gold’s per gram price. Even with two days of price gains, there will likely be some buying activity at jewellery outlets, according to retailers. “Everything suggests that gold prices will continue to be pulled upwards, at least for a few weeks,” said Cyria Varghese, General Manager at Sky Jewellery. “Going by past experiences, shoppers rather do the buying now rather than wait and see prices being pulled higher.”

Shoppers can be thankful that it is still a long way from reaching the highest level the Dubai gold rate has recorded - that happened in 2011 when it touched Dh204 a gram after bullion shot all the way up to $1,921 an ounce.