The UAE-India gold price gap briefly narrowed in April, but industry insiders confirm the change was only temporary.
During the third week of April, gold buyers noticed a surprising drop in the price gap between the UAE and India. For a short period, the difference shrank to just 4%. However, this shift did not result from a stronger Indian rupee or long-term economic change.
According to Shamlal Ahmed, Managing Director of Malabar Gold & Diamonds, the brief dip came from temporary disruptions in the Indian gold market. He stressed that currency movement played no role in reducing the price gap. Ahmed explained that, after a few weeks, the UAE-India gold price gap returned to its usual average of 6%.
For instance, on April 22, the Indian Board Rate for 22K gold reached ₹9,290 per gram. Based on that day’s exchange rate—₹23.05 per dirham—the price translated to around AED 403. Meanwhile, Dubai’s 22K gold rate fell to AED 388.75. This resulted in a rare 4% gap, drawing attention from buyers on both sides.
Ahmed made it clear that this fluctuation was not related to India’s July 2024 decision to cut gold import duty from 15% to 6%. That move was mainly aimed at reducing gold smuggling and increasing legal imports.
Today, the UAE-India gold price gap has normalized. The 6% difference remains a consistent trend in the region’s gold market.
The UAE continues to attract buyers with its tax-free environment, competitive rates, and transparent pricing. Many Indian tourists and residents still choose to buy gold in Dubai during festivals and weddings. The UAE-India gold price gap plays a major role in shaping cross-border demand.
