With gold prices surging, shoppers are adjusting their strategies to maximize their returns during Eid.
UAE gold shoppers are adjusting their purchasing strategies to take advantage of the surge in gold prices, with the local rate nearing Dh350 per gram for 22K. As of this morning, gold has crossed $3,100 per ounce for the first time, climbing by over $20, driven by the global economic pressure and the looming tariffs from the US next month, reported gulfnews.com.
Gold Price Surge: Shoppers Are Adapting Their Strategies
Currently, the UAE gold rate stands at Dh347.5 per gram, up from Dh344.5 over the weekend, with the bullion price at $3,121 an ounce.
The rate was Dh339.5 per gram just on March 27. Despite these rising costs, UAE shoppers are not deterred and are continuing to make purchases, particularly during the busy Eid season
Smart Buying and Exchanging Trends Among Shoppers
“Shoppers are opting to exchange high-value jewellery, such as pieces costing Dh5,000 or more, for multiple smaller pieces of the same weight,” explained a local jeweller.
“They are doing this because they believe that as gold prices rise, having smaller pieces offers more flexibility and the potential for better returns.”
Some visitors, particularly from India and Pakistan, are also following this trend, exchanging their larger jewellery items for smaller ones that they intend to sell when they return to their home countries.
The favourable AED to INR exchange rate adds further incentive for these buyers.
Profitable Moves for Saudi and GCC Tourists
The trend is also visible among tourists from Saudi Arabia and other GCC countries who are visiting the UAE for the Eid break. Many of them are exchanging jewellery purchased in their home countries, particularly from Saudi Arabia where VAT is set at 15%.
“By exchanging their jewellery in the UAE, they can take advantage of the price difference and reclaim the 5% VAT at departure,” shared a Dubai-based jeweller.
Visitors from Bahrain, where VAT is 10%, are also engaging in similar strategies, ensuring they maximize the value of their gold purchases.
The Role of US Tariffs in Gold Price Surge
This surge in gold prices is linked to the broader global uncertainty, with the US poised to announce new tariffs on various goods, which is contributing to gold’s rising value. Investors, seeking a safe haven in uncertain times, are pushing gold prices up, a trend that UAE shoppers are keen to leverage during the festive season.
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