The Dubai gold rate climbed to Dh373 per gram for 22K on Tuesday, up from Dh369, despite market indicators pointing to potential price easing. This Dh4 jump is nudging many shoppers, particularly Indian expatriates gearing up for summer trips back home, to reconsider their buying strategies.
Lighter jewellery, smarter choice
Retailers say there's a visible shift in demand toward lighter gold jewellery. “For the first time during UAE summer sales, Indian expats are deliberately choosing lighter items to sell back in India,” noted Shamlal Ahmed, Managing Director of International Operations at Malabar Gold & Diamonds.
The shift is driven by India’s import duty reduction, from 15% to 6%, announced last year, effectively erasing the previous 9% price advantage Gulf-based buyers once enjoyed. With this benefit gone, buying lighter jewellery now helps travelers remain within India’s customs allowance limits, 20 grams for men and 40 grams for women.
Easier travel, less scrutiny
Gold retailers also report tighter scrutiny by Indian customs this year, particularly on travelers carrying high-value or heavy jewellery. Lighter pieces, especially plain gold or minimal-stone designs, help reduce inspection risks and simplify the process at arrival points.
Given the upward trends in gold pricing in the first half of 2025 and changing duty structures, many expats are choosing practical over ornamental as they prepare for their summer break.
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