Latest news with #ShamlalAhmed
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
22-04-2025
- Business
- Gulf News
Dubai gold price takes another step closer to Dh400 for 22K after another record
Dubai: UAE residents are taking a different approach when it comes to their gold jewellery – not rush to exchange their old collections for new. Because these days, a significant price increase can happen in a week or even in a day or two. The Dubai gold rate for a 22K gram is Dh381.5, which is just over Dh10 higher than what it was on April 20. So, this is the trend that's happening in the UAE and global gold markets – set a record high when it comes to prices and see that being overtaken in hours. 'Most UAE resident-shoppers have switched to buying new gold wherever possible rather than exchange,' said Shamlal Ahmed, Managing Director – International Operations at Malabar Gold & Diamonds. 'They do so because they are certain they can get even better value from exchanging old jewellery later in this market cycle. 'Gold shoppers have gotten a price shock – but they have been quick to change their ways seeing how the market is performing.' The Saudi gold rate for 22K is SR388. It was October 2024 that Dubai gold rate first broke through the Dh300 milestone. How is gold tracking today? If yesterday's talk was about when gold could clear $3,400 an ounce, right now, it's looking to have a good shot of breaching $3,500. That's right – in the global metals' market, bullion is at $3,460 levels, firing up by a near $150. The only certainty right now is that gold will continue to power through. What are UAE shoppers doing? 'Gold price volatility is here to stay and customers are adapting to the new norm. Many customers continue buying with renewed confidence, with gold being the only asset that outperforms in times of uncertainty.' It is a fact - anyone holding gold is sitting on a high after a series of price appreciations unlike never before. if they are holding just over 28 grams - which would be an ounce - they are better off by a near $1,000. Which also reaffirms gold's status as the safe haven.
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.
