Gold prices in India are currently lower than in several Middle Eastern countries and Singapore, mainly due to geopolitical tensions that have driven up demand for gold. While many buy gold from duty-free shops in the UAE, Oman, and Qatar, India is now offering more affordable prices. According to Business Insider, the ongoing conflict in Gaza and rising global uncertainty have increased demand for gold and silver as safe-haven investments, causing prices to rise in the Middle East, including in Oman and Qatar.
Gold Prices in the Middle East
Although gold prices dropped on Monday in the UAE, they remain higher than in the Indian market. In the UAE, market experts see Donald Trump’s victory in the US Presidential election as a potential challenge for gold, as his policies could lead to higher inflation. Despite the recent dip, several factors continue to support gold’s 30% gain this year. Central banks, especially in emerging markets, have been strong buyers of gold.
The current gold prices in the UAE are as follows: 24K gold is priced at AED313.75, 22K at AED290.50, 21K at AED281.25, and 18K at AED241.00. These prices reflect current market trends and may fluctuate based on local and global factors.
Compared to the Indian market, in rupees, in Oman, the cost of 100 grams of 22K and 24K gold is currently ₹2,193, while 10 grams of 24K gold is priced at ₹75,763, showing a ₹220 increase in a short period.
In Qatar, the cost of 100 grams of 24K gold rose by ₹25,470 in just one day, reaching ₹7,62,934. Similarly, the price of 10 grams of 24K gold went up by ₹2,547, bringing it to ₹76,293.
Gold prices in Singapore are also higher compared to India. A 10-gram bar of 24K gold in Singapore is priced at ₹76,805, making it more expensive for buyers.
Why the Price Difference?
The main reason for the difference in gold prices is the changing demand caused by geopolitical events. As people in the Middle East and nearby regions turn to gold due to political instability, the increased demand has pushed prices higher there. In contrast, gold prices in India are more in line with the global trend, which has seen a recent drop, making gold more affordable for buyers in India right now, suggest reports.
