The brief narrowing of the gold price gap between the UAE and India last month was a temporary phenomenon, according to top regional jewelers, with prices now returning to historical levels.
In April 2025, the price difference between the two markets fell to just 4%, compared to the typical 6% margin, sparking speculation among Indian tourists about the advantages of buying gold in the UAE.
“It was a short-lived shift caused by internal market issues in India,” said Shamlal Ahmed, Managing Director of Malabar Gold & Diamonds. “It had nothing to do with currency movements or long-term structural changes.”
On April 22, for instance, a gram of 22K gold in India was priced at ₹9,290, translating to AED 403 at that day’s exchange rate. In Dubai, the gold rate briefly dipped to AED 388.75, pushing the gap to just 4%.
According to Ahmed, the key reason for the sudden dip in the price difference was a temporary cut in gold delivery premiums within India. Retailers facing margin calls had to release large quantities of gold into the domestic market, increasing supply and lowering prices.
This rare alignment prompted renewed scrutiny from UAE-based jewelers, for whom Indian tourists remain a crucial sales driver, often accounting for 30–40% of monthly gold sales in peak travel seasons.
Despite India slashing its import duty from 15% to 6% in 2024, Dubai remains a popular destination for gold shopping due to the wider range, lower making charges, and tax-free environment.
“Even with the reduced duty, we didn’t see a drop in tourist buying — in fact, Indian visitors bought more,” Ahmed noted.
Gold trade insiders warn, however, that if the price difference stays below 5%, buying habits could begin to shift.
For now, the market has stabilized, and UAE continues to offer better value for gold shoppers than India.
