Gold prices in the UAE nearly stabilised on Thursday on the back of imposing the value-added tax (VAT) and the rise of digital currencies, which slowed down the gold demand.
The price of the 24-Karat gold inched up AED 0.02 to AED 155.58 per gram, while gram prices of 22-Karat and 21-Karat gold edged up to AED 142.59 and AED 136.12, respectively.
Meanwhile, the price of 18-Karat gold slipped 0.06% to AED 116.60 per gram, while gold ounce’s price increased by 1.3% to AED 4,838.35.
Despite the rise of the cryptocurrency and the levying of VAT in the UAE, gold will grow in the long run, said Abdul Salam K.P., Malabar Group’s executive director.
After being adapted to the new tax, the UAE’s consumers will increase their funds allocated to gold purchases, which could boost the sector, he added.
Investors began to move toward the digital currencies, which slowed down the domestic gold market, but gold remains a safe haven amid the instability in the region, commodities analyst Razan Shahwan commented.