India’s strict import rules add lustre to Dubai gold trade

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Fortunes of Dubai as a global trade hub of gold will not be hit by the dismal prospects of slowing demand in India, the world’s largest consumer of yellow metal, precious metals analysts said.

On the other hand, the latest forecast by the World Gold Council (WGC) that India’s gold demand could fall as much as 24 per cent in 2016 to the lowest level in seven years due to higher prices that hit a 13-month high in the third quarter, and increased smuggling as Indian government seeks to bring transparency to bullion purchases, could be seen a boon for Dubai’s gold and jewellery trade, analysts said.

Passengers flying via Dubai to India and Gulf-based Indian expatriates will now be increasingly tempted to take home more than the permissible duty-free quantity of the yellow metal since the profit margins would widen, traders argued.

 

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