In addition to the fact that there is no import tax on gold, other factors have an influence on the price of gold in Dubai. The standard economic rule of supply and demand applies to the price of gold. When the supply of the gold commodity goes up, the price goes down, and vice versa. Economic and political conditions in the City of Gold, can affect the rate. In times of high inflation or a financial crisis of some kind, people, corporations and governments will flock to buy up gold. This will force the price of gold to go up.
Another common situation that affects the rate is when gold merchants and dealers buy up large quantities of gold causing buyers to assume there is a short supply. This is an artificial situation, but the number of buyers increases, thus the gold price goes up. If a country experiences a serious conflict or disaster, gold is preferred over currency. As the value of the dollar goes down, the demand for gold usually increases. Then the rate of gold can go up a great deal.
The Gold Rate fluctuates daily, just as the stock market does. One way to find out the current price is to go to a website, making sure the website is credible. The prices are shown in a comparison chart with other countries. Checking with a broker or investment company is a reliable way to get the daily rate.
Dubai has a large supply of gold. Much of its gold is imported from India. Investors come here often to purchase the gold at a very low rate. Along the mall called Gold Souk, there are many merchants selling a whole array of gold objects and jewelry. Here the gold shops are competitive and a certain amount of bargaining is part of the sale.
This is the country where those interested in buying gold can get the best deal. Gold from this country can either be bought in person at the Gold Souk, or purchased from a broker. Gold can also be found at the airport. But reviews state that the customer service at the airport is not that good. The merchants there are not as likely to bargain. It is recommended that you purchase at the Gold Souk.
Factors such as, supply and demand, economic downturns, political crisis, and artificial speculation influence the Gold Rate. The fact that this country imposes no import tax on gold is, perhaps, the most important factor.