Gold prices in Dubai are trading at a steep discount to the London market as the Middle East is rocked by the war between the US and Iran, which has disrupted not only flight routes to this major city in the United Arab Emirates (UAE) but also dampened demand for the bullion as investors remain uncertain about how long the crisis could last.
is a major trading hub for physical gold, supplying to Switzerland, Hong Kong and India, according to a Reuters report.
However, the US–Israeli war on Iran has triggered , increasing the availability of gold in the region while demand remains weak.
“The market remains at a discount, but in thin trade the variation is wide, ranging from about $10 to $30 per troy ounce,” a Dubai-based bullion dealer told Reuters on Monday.
Demand is weak both in India, a major bullion consumer, and the , while price volatility is prompting buyers to delay purchases, the dealer added.
Globally, too, have remained subdued despite the Middle East conflict as investors gauge the inflationary impact of the crisis and amid a strong US dollar. Since the start of the US-Iran war, US spot gold prices have been down by almost 2%.
In a lucrative spot!
As Dubai gold turns attractive for investors, investors must know the new baggage rules introduced by the government to bring jewellery to India. Under the New Baggage Rules 2026, the earlier value limit on jewellery carried by travellers has been removed, while the weight limit remains in place.
This rule change came into effect on February 2, following its announcement in the .
These rules are beneficial for Indian travellers returning from major global gold hubs such as Dubai, where gold prices are often lower than in India.
How much duty-free gold can you bring to India from Dubai?
According to a press release issued by the PIB, the special allowance for jewellery is now based only on weight, with the earlier value limits removed. Under this rule, eligible returning residents and tourists of Indian origin who have stayed abroad for more than one year can bring jewellery duty-free based purely on its weight. This exemption is only for the gold jewellery brought from Dubai and not gold bars and coins.
The limits are:
- Women: Up to 40 grams of jewellery
- Others: Up to 20 grams of jewellery
Earlier, there was a cap on the value, but the government has removed that amid the sharp surge seen in gold prices in the last two years.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.