Is Gold really cheaper in Dubai than Delhi, Mumbai? Expert explains a different equation

Dubai, long regarded as a global gold trading hub, continues to offer more affordable gold than India — even as prices soared to record highs last week amid intensifying US-China tariff tensions and a weakening dollar.

The surge was driven by a flight to safety, with gold touching an all-time high of $3,243 an ounce due to escalating geopolitical risks and market volatility. The World Gold Council noted a significant uptick in investor demand for haven assets like gold, as global equity markets waver and liquidity concerns mount under continued quantitative tightening.

In Dubai, 24-carat gold jumped by 4 Dirhams (₹93.97) per gram on April 10, reaching Dh 374.50 (₹8,797.49) per gram, up from Dh 370.50 (₹8,703.52) the previous day, according to the Dubai Jewellery Group. Other rates included:

22-carat: Dh 346.75 (₹8,145.60)

21-carat: Dh 332.50 (₹7,810.85)

18-carat: Dh 248.00 (₹5,825.84)

In comparison, India’s 24-carat gold closed at ₹90,161 per 10 grams and 22-carat gold at ₹89,800, significantly higher due to GST and import duties — highlighting Dubai's tax-free edge for gold buyers.

However, experts differ on this fact. CA Nitin Kaushik noted that Dubai has always been a magnet for Indian gold buyers, known for its tax-free pricing and competitive rates. However, with recent changes to India’s import duties and fluctuating exchange rates, many wonder if the cost advantage still holds.

He explained that as of March 10, 2025, the price of 24-carat gold in Dubai stood at Rs 81,767 per 10 grams, compared to Rs 87,820 in Mumbai, a noticeable gap. However, when bringing gold back to India, import duties apply. The Union Budget 2024–25 brought down the import duty on gold from 15% to 6%, a significant shift that makes overseas purchases more attractive.

With the government-set tariff value at $927 per 10 g and an exchange rate of Es 87.31, the tariff-converted value in INR is Rs 80,936. After applying the 6% customs duty (Rs 4,856), the final cost becomes Rs 86,623 per 10g — still cheaper than Mumbai’s rate by 1.36%.

Moreover, Indian travelers can legally bring gold duty-free: men up to 20g (Rs 50,000) and women up to 40g (Rs 1,00,000). 

Why gold is cheaper in Dubai

Dubai offers tax-free gold purchases, allowing buyers to acquire gold at market rates without any additional charges. Unlike India, Dubai does not impose import duties on gold, ultimately reducing the overall cost for consumers. The highly competitive gold market in Dubai features numerous dealers offering attractive rates to lure buyers. Throughout history, Dubai's gold markets have prospered, establishing themselves as crucial hubs for the collection, sale, and trade of gold.

The Dubai Gold and Commodities Exchange (DGCX) offers a platform for trading gold futures and derivatives, providing risk management tools and price transparency. In 2022, the DGCX recorded a trading volume exceeding 7.6 million contracts. Dubai is home to major gold refineries such as Emirates Gold and Kaloti Precious Metals, ensuring the quality and purity of gold traded in the emirate.

The competitive prices of gold in Dubai continue to attract Indian buyers, especially those eligible for duty-free allowances. Despite the current import duty structure, purchasing gold in Dubai remains cost-effective for Indian consumers, as long as they comply with legal import limits and procedures.