Dubai Gold Prices Remain Lower Than London Counterparts Amid Duty-Free Exemptions for Indian Travelers.

Global Gold Market Update

Dubai Gold Prices Trading at Discount to London Market

The ongoing US-Iran conflict has disrupted global gold markets, resulting in a steep discount in Dubai gold prices relative to the London market. The conflict has led to widespread passenger flight cancellations across the Middle East, increasing the availability of gold in the region while demand remains weak.

Market Analysis

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Dubai, a major trading hub for physical gold, supplies to key markets including Switzerland, Hong Kong, and India. However, the current market conditions have resulted in a significant discount, with prices ranging from $10 to $30 per troy ounce. Demand for gold is weak in both India and the Middle East, prompting buyers to delay purchases due to price volatility.

Global Gold Prices

Globally, gold prices have remained subdued despite the Middle East conflict. Since the start of the US-Iran war, US spot gold prices have declined by almost 2%. However, experts expect gold prices to remain volatile in the near term, with prices potentially rising due to geopolitical tensions and global uncertainties.

Investment Advice

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Pankaj Mathpal, founder of Optima Money Managers, advises investors to allocate 15% to 20% of their investment portfolio in gold. This allocation can help investors diversify their portfolios and mitigate potential risks.

New Baggage Rules for Indian Travellers

The Indian government has introduced new baggage rules, effective from February 2, 2026, to facilitate the import of gold jewellery from Dubai. Under the new rules, eligible returning residents and tourists of Indian origin can bring jewellery duty-free based on its weight. The limits are:

• Women: up to 40 grams of jewellery
• Others: up to 20 grams of jewellery

The removal of value limits on jewellery is expected to benefit Indian travellers returning from major global gold hubs like Dubai, where gold prices are often lower than in India.