Narrowing of UAE-India gold price gap only temporary, says jeweller

A shrinking gap chips away at the incentive for Indian tourists to buy gold in the UAE

- BY MANOJ NAIR Business Editor

The narrowing of the gap between gold prices in the UAE and India to below 6 per cent was “only a temporary phenomenon”, according to a leading jeweller.

“Yes, there was a phase in April when UAE-India gold price gap was 4 per cent, 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 per cent.”

A ‘rare’ occurrence

April’s unusual dip sparked chatter among Indian tourists in the UAE about whether buying gold locally offered any real price advantage over purchasing in India.