UAE gold prices ended last week down by between AED 12.25 and AED 20.50 per gram, depending on the karat, according to price indicators announced in Dubai and Sharjah. Jewellers say the drop has brought buyers back, both for jewellery and for small gold bars.
Key points
- 24 karat gold closed the week at AED 481.50 per gram, down AED 20.50.
- Jewellers say it was the largest weekly fall in nearly four months.
- Demand is strongest for 18 karat jewellery and for 20 and 50 gram bars.
- Jewellery carries 5% VAT, and tourists can claim part of it back.
How much have UAE gold prices fallen?
These are the prices per gram at the end of last week, compared with the end of the week before.
| Karat | Price per gram | Change on the week |
|---|---|---|
| 24 karat | AED 481.50 | Down AED 20.50 |
| 22 karat | AED 446.00 | Down AED 18.75 |
| 21 karat | AED 427.50 | Down AED 18.25 |
| 18 karat | AED 366.50 | Down AED 15.50 |
| 14 karat | AED 285.75 | Down AED 12.25 |
The daily rates published by Gulf News, which come from the Dubai Gold & Jewellery Group, show 24 karat gold at AED 502 on 17 and 18 October. It then slipped on most days, and the biggest single drop came on 22 October, when it lost AED 11.50 to AED 485.75. It slipped again to AED 481 on Friday, 23 October, and has stayed between AED 481 and AED 481.50 since then. Gold prices change every day, so check the current rate with the shop before you buy.
Why are buyers returning to the gold market?
Gold trader Ricky Dhanak said demand for bullion and jewellery gifts had risen noticeably, helped by price falls that are “among the largest weekly drops in about four months”. He expects demand to continue if prices stay close to current levels. Another trader, Manji Balik, said a number of customers had been waiting for a big fall before buying bars or jewellery.
Trader Raj Bahi described the current demand as among the strongest in weeks. He said 18 karat jewellery makes up the largest share of sales, while bullion buyers are mostly choosing 20 and 50 gram bars.
Do you pay VAT on gold in the UAE?
On jewellery, yes. Gold jewellery is charged 5% VAT, and the tax applies to the making charge as well as the gold. Investment gold is treated differently. Bars and coins of at least 99% purity that can be traded on global bullion markets are zero rated, so no VAT is added.
Can tourists get VAT back on gold jewellery?
Visitors who are not UAE residents can claim part of the VAT back under the tourist refund scheme run by the Federal Tax Authority. You must be 18 or older, buy from a shop that is part of the scheme and spend at least AED 250 on a single tax invoice. Ask for a tax free tag when you pay.
The goods have to be validated at the airport or another exit point within 90 days of purchase, and you must leave the UAE within six hours of validating them. The refund is 87% of the VAT paid, minus a fee of AED 3.60 per transaction, according to Planet, the scheme operator. You can take it in cash, up to AED 35,000, or have it paid to a card or digital wallet. On a piece costing AED 10,000 before VAT, that comes to about AED 431.
What should you check before you buy gold?
Ask for the gold price and the making charge as separate figures, so you can compare shops. The making charge depends on the design and the store, and it is often where discounts are offered. 18 karat pieces cost less per gram, but they also contain less gold. Our guide to the best time to buy gold in the UAE explains how seasonal offers work, and you can compare this week’s prices with our earlier report on Dubai gold prices steadying after a 10 day drop. If you are visiting, our Dubai Shopping Festival guide covers the season’s offers and the tourist tax refund.
Main image: Gold jewellery in a shop window at the Gold Souk, Dubai, 2022. Photo: dconvertini, Wikimedia Commons, CC BY-SA 2.0.
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