Gold prices in the souk market surged by over Rs 1,100 each in 22K and 24K of 100 grams on July 4th in Indian rupees. This is cheaper significantly compared to the gold sold in the financial hub of India, aka Mumbai. Gold prices surged on Thursday as investors now expect at least 2 rate cuts from the US Federal Reserve after chair Jerome Powell's dovish remarks during the European Central Bank's conference in Portugal.
Gold Prices In Souk Market Vs Mumbai Gold Rates:
22K Gold Prices:
100 grams of gold in 24K in the souk market of Dubai is at Rs 6,01,441 on July 4, rising by Rs 1,137. While 10 grams price is up by Rs 114 to Rs 60,144. 8 grams and 1 gram is up by Rs 91 and Rs 11 to Rs 48,115 and Rs 6,014 respectively.
On the contrary, gold prices in Mumbai jumped by Rs 6,500 to Rs 6,70,000 in 22K of 100 grams, while 10 grams is up by Rs 650 to Rs 67,000.
22K of 100 grams is cheaper by Rs 68,559 in Dubai as against gold sold in Mumbai.
24K Gold Prices:
In Dubai, 24/100 grams of gold is at Rs 6,49,761 up by Rs 1,137. While 10 grams surged by Rs 114 in Indian rupees to Rs 64,976, and that of 8 grams is up by Rs 91 to Rs 51,981. Lastly, 1 gram of 24K is at Rs 6,498 up by Rs 12 from the previous day.
On the other hand, gold prices in Mumbai are up by Rs 7,100 to Rs 7,30,900 in 24K/100 grams. While 10 grams is up by Rs 710 to Rs 73,090.
24K gold price is cheaper by Rs 81,139 in the souk market versus gold in Mumbai.
Gold Prices In Dirhams In Dubai:
22K and 24K gold prices in the local currency of Dubai surged by 0.50 dirhams to 50 dirhams.
22K of 100 grams is priced at AED26,450. In the same carat, 10 grams is at AED2,645, 8 grams at AED2,116, and 1 gram is at AED264.50.
Further, 24K of 100 grams is at AED28,575, 10 grams is at AED2,857.50, 8 grams is available at AED2,286 and the cheapest 1 gram is priced at AED285.75.
Lastly, 18K gold prices in the souk market are at AED21,950 for 100 grams, AED2,195 for 10 grams, AED1,756 for 8 grams, and AED219.50 in 1 gram.
Why gold is cheaper in Dubai than India?
Explaining in detail why gold is cheaper in Dubai than in India, ClearTax's blog said, that Indians often travel to Dubai to buy gold at affordable rates. Gold prices in Dubai are cheaper compared to India due to several reasons. One of the reasons for a cheaper gold rate in Dubai is zero GST (goods and services tax) on bullion and gold jewellery, while India imposes 3% GST on gold. Apart from this, Dubai jewellery stores charge a reasonable manufacturing cost, which makes 24K gold in Dubai approximately 5% to 7% cheaper than in India.
Also, ClearTax highlighted that Daily global rates and the currency rate between the UAE dirham and the Indian rupee determine the price difference. Consumers save more money when they purchase gold in huge quantities from Dubai. Thus, the pricing advantage is one of the major reasons why Dubai remains a gold investment destination for Indians.
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