Latest news with #DubaiGoldSouq
Gulf News
06-05-2025
- Business
- Gulf News
UAE gold price 'still' lower than in India despite April events
Dubai: The price difference between UAE and India's gold rates dropping below 6% was only a temporary phenomenon, according to a leading jeweler. 'Yes, there was a phase in April when UAE-India gold price gap was 4% - but that happened because of some issues in the Indian market temporarily,' said Shamlal Ahmed, Managing Director of Malabar Gold & Diamonds. 'It had nothing to do with the Indian rupee firming up in any way and reducing the price difference. 'After about those two weeks in April, the price between UAE and India gold has gone back to 6%.' April's events had set off a lot of chatter among Indian visitors to the UAE on whether there is any price advantages to buying here rather than back in their home country. A 'rare' occurence For instance on April 22, the Indian Board Rate for a gram of 22K gold was Rs9,290. At that day's exchange rate for AED-INR of 23.05 rupees for one dirham, the Indian gold price would be equivalent to Dh403. That same day, the Dubai Gold Rate was Dh388.75 for a brief period. It meant that the price difference was just 4% compared to the usual 6%. It was in July 2024 that India slashed duty on gold from 15% to 6%, primarily done with an eye to drastically reduce gold smuggling into the country. But for UAE and GCC gold jewelers, it meant the sizable 15% price difference of the past. But that did not in any way lead to a drop off in gold buying from Indian visitors/tourists to the UAE. 'There would be guided tours from India who would come directly to the Dubai Gold Souq,' said Ahmed. 'Even though the price difference was cut from 15% to 6%, what changed was that Indian tourists ended up buying more here.' But gold trade sources say that anything less than 5% price difference could alter buying habits among Indian visitors. Which is why what happened last month when the price difference slipped to 4% came as a bit of a jolt. What happened in April? The main cause for the sudden change in India-UAE gold price differential was because of the cut in the premiums on gold deliveries charged to jewelery retailers in India. 'Where jewelers were used to paying premiums, they suddenly were seeing big cuts,' said Ahmed. 'It was mainly because many jewellery retailers who were not hedging their gold buys were hit by margin calls. It meant there was a lot of gold availability in the Indian market at the same time. 'That explains the price difference between UAE and India narrowing rather than anything fundamental. This was a short-term change, nothing more.' Indian tourists to the UAE remain one of the biggest buyer categories for gold in this market. Which is why price changes in India are watched with intense interest here. "In some months, Indian tourist buying makes up 30%-40% of our sales," said a jeweller. "The biggest reason continues to be the price difference - there was no issue when India slashed duty from 15% to 6%.
Gulf News
01-05-2025
- Business
- Gulf News
Dubai gold price drops to lowest in 2 weeks - but many UAE shoppers have already done their buying
Dubai: The Dubai Gold Rate has slipped further to Dh362.5 a gram for 22K – the lowest in more than 15 days. The fairly sizable drop did not come in time for many shoppers in the UAE, who were out buying gold yesterday to make 'Akshaya Trithiya', the Indian festival where adding to one's gold holdings is a key part of the tradition. Even then, UAE's shoppers – residents and tourists – were not deterred that they had to pay for gold at Dh366-Dh369 a gram yesterday. The Dubai Gold Souq and jewellery stores elsewhere in the UAE had a heavy rush of buyers, starting from around 12pm and which continued right through closing time. It was as if shoppers were only intent on meeting the tradition of buying on Akshaya Trithiya whatever be the prevailing price. "They were picking up everything - gold coins, bars and jewellery," said Abdul Salam K. P., Vice-Chairman of Malabar Gold & Diamonds. This was indeed the best one-day sales the UAE jewellery trade has had since the start of 2025." Clearly, there was a lot of pent up demand on display, because most shoppers had been staying away from jewellery stores as prices kept on pushing higher and reaching the highest point of Dh388 last week. 'Contrary to historical trends, the INR might appreciate. Key thesis here is that the US will prefer a weaker dollar and a lower interest rate regime as large amounts of US debt will be maturing and coming up for renewal. 'Also, India's macro-factors like inflation, government finances, GDP growth and political stability should aid in INR stability. Only joker in the pack are crude oil prices, which according to me will be range-bound with a downward bias' - Prasanna Pathak, Managing Partner, The Wealth Company A little price drop helps By afternoon yesterday, the local gold rate had slipped to Dh366 levels, and which was another catalyst in the shopper surge seen in the afternoon. 'Tradition wins' is how another retailer characterized the heavy buying demand seen yesterday. "It would not surprise me if we had the same rush even if the Dubai gold rate was Dh375 or Dh385," he added. Many shoppers, especially first-time buyers, were also using the day to start their monthly instalment schemes with jewellery retailers. This way, they make a commitment to pay a fixed amount each month and for them to pick up gold at the end of 12 months. (In many cases, the jewellers put up a sum equal to what the individual is paying in a month as an incentive.) "There were younger shoppers who were getting into gold investments through the monthly instalment program," said Salam. "Their idea is to time their next big gold purchase in 12 months - and closer to Akshaya Trithiya 2026."
The National
24-04-2025
- Business
- The National
'Insane' demand for gold bars at bustling Dubai souq as prices soar
The historic Dubai Gold Souq in Deira is on the front line of a relentless price surge. But traders, experts and customers have said the market for the precious metal is mixed. While some say sales have slowed over the past few weeks, the overall picture is complex, with some customers switching to gold bars rather than jewellery to avoid extra costs. They also say demand is resilient with the global price surge only reinforcing gold's status as a safe haven and the run was even encouraging buyers who did not traditionally view it as an investment. 'I think people have to realise … even if there is a dip, it won't be to the extent where they're going to make a huge saving, so they might as well buy at the current prices,' Arjun Dhanak, director of Kanz Jewels, told The National. 'The price increase hasn't really had a huge effect on the buying.' There was no change from March 2024 to this year, he said, but there has been a small decrease of 'about 10 to 15 per cent' over the past month. He said he had not seen any evidence of people wanting to sell but some were exchanging old for new and others were deciding to buy gold bars. 'People wanting to buy investment bars have gone up,' he said. 'They're … coming to buy because they're expecting it to go higher. People are sticking with the gold.' Yahya Mandavi, manager at Al Almas, said sales were lower but he hoped this would change. More customers were buying raw gold rather than jewellery to avoid manufacturing charges. 'The demand on that has gone insane. The demand for jewellery has plummetted,' he said. 'It's the first time gold has hit this high, so we are just as lost as everyone else.' The surges were being driven by 'mostly politics' and 'demand', Mr Mandavi added. He estimated sales were down about 27 per cent on last week but said the long term was harder to assess. Gold retailers in the UAE are resorting to a range of measures including reduced making charges, attractive payment plans and exchange schemes, and lightweight jewellery collections, but the price has continued to rise on the back of geopolitical tension, US President Donald Trump's tariff campaign and concerns over the global economy. Mr Dhanak said it was difficult to analyse the impact of the surge because many people have already bought their gold for Diwali and Christmas, with the typically slower summer season is approaching. The cost for a gram of 24 carat gold at the souq surged to a record Dh412 on Monday but by Thursday morning had fallen back to Dh400. Gold globally has surged by more than 30 per cent this year. Andrew Naylor, head of Middle East and public policy at the World Gold Council, said the metal closed in March at a record high of more than $3,100 per ounce. Mr Naylor said current dynamics were also playing a role with a weakening dollar due to concerns about the US economy supporting gold prices across all major currencies. 'At the same time, we are seeing renewed interest from investors … and central banks remaining significant buyers,' he said. Crucially, Mr Naylor said the UAE had its own unique profile. 'While we have seen a decline in jewellery demand in volume terms due to high prices, consumer spending has remained resilient,' he said. 'Buyers are adapting by choosing lighter pieces, but they are still investing in gold.' He said there had been a shift in demographics with the traditional Indian tourist market reducing after the nation cut its import duties. 'This has created room for growth from other tourist markets,' he said. 'The UAE is becoming increasingly global as a tourism and retail destination, with visitors from Europe, Central Asia and China now contributing to demand.' Dubai has a historic link to the gold trade stretching back decades. And the historic Deira souq is on the front line of that trade. Mr Dhanak agreed more buyers were coming from outside the traditional Asian markets, such as westerners. 'I don't think they saw gold as something which had investment value to it,' he said. 'I think they're seeing that now.' The global gold market is broad and diverse. Mr Naylor said central banks remain a key source of demand 'with 2024 marking the third consecutive year of net purchases exceeding 1,000 tonnes as they seek to diversify reserves and reduce reliance on any single currency'. Investors were also turning to gold as a hedge against inflation and as a counterweight to uncertainty in equity and bond markets, he said. 'Jewellery demand – which accounts on average for 33 per cent of annual demand – has been affected by high prices, particularly in terms of volume. However, total spending remains high and many consumers are still purchasing gold, albeit in smaller amounts,' said Mr Naylor. 'It's gold's demand profile that makes gold unique – no other asset class has this diversity of demand and use. As both a consumer good and investment asset, gold performs differently to other asset classes and is one of the reasons it has been viewed as a diversifier and mitigator of risk.' Shamlal Ahamed, the Dubai-based managing director for international operations at Malabar Gold and Diamonds, said: 'Our customers are staying the course [with] steady demand across our showrooms. 'While some cautious buyers may take a temporary step back, such moments are typically fleeting. This enduring trust speaks volumes about gold's perceived strength, stability, and lasting worth in uncertain times.' Mr Naylor said the conditions that have supported gold's rise remain but it was not possible to forecast the price. 'Inflation remains a concern, real yields are elevated and investors continue to face a high degree of market and policy uncertainty,' he said. 'In this environment, gold's role as a strategic asset remains highly relevant. 'Central bank buying, investor interest, and a cautious macroeconomic outlook all point to a market that still has solid foundations.' Back at the souq, customers were browsing the lavish displays of gold bars, ingots, necklaces and ornate rings. 'If we feel like buying, then we will buy,' said Mathias, a customer from Goa in India. 'It is like real estate, you never know when it is a good time to buy.'
Gulf News
19-04-2025
- Business
- Gulf News
Dubai gold price sticks to high level for weekend as 'smart money' goes into bars
Dubai: Anyone shopping for precious jewellery this weekend will find the Dubai Gold Rate is just Dh1 lower than the record Dh372.25 a gram for 22K hit on April 16. And on the 24K gram, it's back to slightly over Dh400. This will come as a disappointment for those shoppers who had been hoping that prices would remain under Dh370 a gram for 22K, as it did for the better part of yesterday (April 18). Even at current never seen before levels, there are still UAE based shoppers who picking up gold – and they are 'smart money' into gold bars and, if not, coins. 'There are shoppers who would never have thought of buying anything other than gold jewellery now insisting on buying gold bars,' said Shamlal Ahmed, Managing Director of Malabar Gold & Diamonds. 'Whenever these regular gold shoppers find they have money to spare, they are putting it into bars. 'Currently, 30% of our UAE shoppers are opting for bars and coins, whereas just months ago, that tally was at 8%. We have never seen such a switch happen.' Other jewellery retailers have more or less the same feedback to share. 'A sizable number of shoppers – those making regular investments in gold – do not want to spend on jewellery making charges right now,' said a jeweller, who operates outlets in the Dubai Gold Souq as well as at some of the prestigious malls in the city. 'So, they point to the gold bar – in the size they want – and that's it. The best part is they also save on making charges.' Gold is the new currency A lot of the retail level demand for the metal is centered around where prices might end up next. This weekend, bullion is at $3,315 an ounce, well below the $3,350 it touched midway through this week. 'For gold prices to unwind, world's central banks need to halt their buying spree – but that somehow seems unlikely to happen,' said Ahmed. 'So, naturally, the forecasts are for gold to push its way towards $3,700 sometime this year. 'That's why shoppers are putting their faith in bars and coins, where they see the possibility of further gains from present levels.' Watch out for 'profit-taking' At some point, global funds with sizable gold holdings could go in for some selling on their positions. That would trigger a drop in prices, to what levels is anyone's guess right now. Any drop to around $2,900 levels would be a positive for shoppers.
Zawya
27-03-2025
- Business
- Zawya
Dubai set to open a new gold hub that will boost the $382bln annual jewellery sale
Dubai, UAE: Dubai, which has solidified its position as the world's best destination for gold and diamond jewellery as well as bullion trade, is in need of a new gold hub, that could cater to a wider consumer base amongst UAE residents and tourists, many of whom visit Dubai to buy gold and diamond jewellery for social occasions including festive shopping and weddings. The value of the jewellery market is expected to increase from about US$270 billion in 2022 to over US$330 billion by 2026, according to Statista, a global market intelligence provider. In 2024, Dubai's gold demand reached previously unseen levels, with the combination of record gold prices and volumes resulting in a Q4 value of US$111 billion and an annual value of US$382 billion, the highest ever, a recent report said, citing statistics released by World Gold Council. 'There was a 300 percent increase in gold trade flow in Dubai from 2023 to 2024, reflecting the city's growing appetite for gold,' said the report. As of 2024, the UAE ranked second globally in per capita consumer demand for gold jewellery, with 5.07 grams, trailing only Hong Kong's 5.12 grams. Gold prices ranged between $1,812 and $2,142 in 2023, but as of 2024, prices reached as high as $2,700, marking a bullish trend with substantial yearly growth. 'Despite a decline in consumption in the initial two quarters of 2024, the UAE maintains its position as the world's fifth-largest market for gold jewellery. This high demand is attributed to the nation's high GDP per capita, the cultural importance of gold, tax-free shopping, robust tourism and retail sectors, and gold's status as a secure investment,' according to recent research by the World Gold Council. 'These elements, coupled with aggressive marketing and accessibility, significantly boost gold consumption.' The UAE's annual gold jewellery demand stands at nearly 40 tonnes, tying with Russia and followed by Saudi Arabia at the 7th position. Historically, the age-old Dubai Gold Souq has been catering to the growing needs of jewellery and has been serving the residents and tourists very well. However, the increase in demand for gold and diamond jewellery in the Middle East, Africa, South and Central Asia, the City of Gold now needs a new Gold Hub. Mr. Sulaiman TM, Chairman of Unique World Group, says, 'In addition to the increase in population and increased buying power of consumers, we anticipate an increase in demand for gold and diamond jewellery in the coming years that necessitates the development of a second Gold and Lifestyle Hub in Bur Dubai, where residents and tourists could shop jewellery at their convenience. 'Following a series of discussions with the leading gold and diamond jewellery retailers, we have seen the demand for such a new Gold Hub and I am glad to announce that such a new Gold Hub will see the daylight soon.' Gold, with an estimated market cap of $15.8 trillion, has experienced a nearly 20 percent increase in value over the past year. Other nations with high per capita consumer demand for gold include Switzerland (4.06 grams), Kuwait (3.95 grams), Turkey (2.34 grams), Singapore (2.21 grams), Saudi Arabia (1.59 grams), Australia (0.90 grams), Iran (0.83 grams), and the US (0.74 grams). The research also reveals that the United States holds the largest gold reserves globally, amounting to 8,133 tonnes valued at $507 billion. The gold bar and coin sector sees greater demand in China than anywhere else. This strong investment demand naturally propels the popularity of gold bars and coins, reaching 280 tonnes. China surpassed India in 2023 to become the world's top consumer of gold jewellery, with a demand of 630 tonnes, a 10 percent year-on-year increase. India follows with jewellery demand totaling 562 tonnes in 2023. India also ranks among the top ten nations with the highest gold reserves, holding approximately 804 tonnes worth $50 billion. Mr. Mohammed Suhaib, Managing Director of Unique World Group, says, the new Gold Destination will help jewellery sales to accelerate further. 'As the population of Dubai and UAE increases rapidly – to cross 3.8 million in Dubai and 10.8 million in the UAE – we see the creation of a new Gold and Lifestyle Hub an important step in facilitating this industry to grow further,' Mohammed Suhaib said. 'In addition to the population growth, a jump in annual tourist inflow – many of whom have gold and diamond in their shopping list – will require a new Gold and Lifestyle Hub that will help shoppers to hunt for new and trendy collection.' Unique World Group is a Dubai-based diversified business conglomerate with interests in Business Centre, Education and Real Estate sectors, and is currently embarking on a new more diversified growth trajectory. Unique World Group, established by Mr. Sulaiman TM, a non-resident Indian serial entrepreneur from Kerala state, has demonstrated leadership in all the areas that he had ventured in – in the UAE. Over the last 27 years, the group has grown from strength to strength with a vision to continuously grow and expand, leveraging the power of digitalisation and innovation. In more than a quarter of a century, the group helped thousands of new businesses with business advisory services, trade licenses, office facilities and a bouquet of business enabling services to help them establish in the UAE. The company actively seeks new opportunities and partnerships, aiming to improve, evolve, and establish itself as an industry leader in the Business Centre, Education, and Real Estate sectors. He and Muhammed Suhaib, the scion of the family, are now getting ready to embark on a new journey that will add greater value to Dubai's economy. Established in 1998, Unique World Group currently manages a portfolio of five business centres, educational institutions and a number of real estate assets in the UAE with a team of more than 100 professionals working day and night to expand the group's business into new economic sectors. Over the last 27 years, the Group has evolved from a small business into a formidable corporate entity, mirroring Dubai's remarkable economic success. Through its business, the group has impacted more than 500,000 businesses with a substantial number of satisfied clients. About Unique World Group Unique Group is a renowned business conglomerate with a legacy of excellence and strategic expansion. Established in 1998 in the UAE by visionary entrepreneur Sulaiman TM and a team of business enthusiasts, the Group has steadily built a reputation for delivering exceptional customer experiences across multiple industries. Now with Mohammed Suhaib leading at the forefront as the Managing Director and next-gen leader, Unique Group continues to set itself apart through its commitment to quality, integrity, and innovation. As the company grew, it expanded its offerings beyond its initial focus, venturing into key sectors such as real estate, contracting, and business services. With a forward-thinking approach, Unique Group continuously adapts to evolving market trends, ensuring that its services remain relevant, efficient, and impactful. This strategic diversification has allowed the Group to establish itself as a trusted leader in the UAE and beyond. At the core of Unique Group's success is its dedication to customer satisfaction and operational excellence. By fostering a culture of innovation and collaboration, the company has developed solutions that empower businesses, drive economic growth, and enhance the overall business landscape. Its ability to blend expertise with cutting-edge strategies has solidified its position as a trailblazer in the industry. Today, Unique Group continues to push boundaries, embracing new opportunities and setting higher benchmarks in service excellence. With a strong foundation built on trust and strategic vision, the Group remains committed to shaping the future of business in the region, ensuring long-term success for its clients, partners, and stakeholders.
