The prices of gold in the UAE continue to drop hitting its lowest rate this year so far.
Gold prices dipped yesterday, June 26, with 24-Karat (24K), 22K, 21K, and 18K gold priced at Dh153.00, Dh143.75, Dh137.25, and Dh117.50, respectively.
Today, gold rates dropped slightly further based on the latest update of Dubai Gold and Jewellery Group. 24-Karat (24K) gold is currently priced at Dh152.50, while 22K gold is valued at Dh143.25.
Meanwhile, other types of gold like 21K and 18K are priced at Dh136.75 and Dh117.50, respectively.
The prices vary depending on the purity of gold and the market it was traded in.
Due to the continuous drop in gold prices, jewelry outlets in the country said that it is encouraging customers to buy jewelry items at this time. They also added that they are starting to see a 30% increase in jewelry sales in June compared to previous months.
It can be recalled that the UAE Cabinet has previously introduced a tax mechanism that will exempt investors of gold, diamond and other precious metals from Value Added Tax (VAT).
With the new system, the five percent VAT in gold and diamond, among others, will only be documented in the seller’s records. The VAT, however, will not be paid by the investor.
The new law is applicable for different precious metals including gold, silver, and platinum with a purity of 99 percent or more used in trade in accordance with internationally accepted standards.
