Dubai gold below Dh500: Shoppers prepone jewellery buying ahead of Navratri, Diwali

Some expatriate and non-resident Indian (NRI) families are bringing forward their gold purchases as prices in Dubai fall below Dh500 per gram ahead of the Indian festive season.

Jewellers said the decline comes at an important time, with Navratri, Dhanteras and Diwali traditionally driving strong demand for gold jewellery across the UAE, particularly among the South Asian community.

Lower Gold Prices Boost Festive Demand

Tawhid Abdulla, chairman of the Dubai Jewellery Group, said the period from Navratri through Dhanteras and Diwali is one of the most important times of the year for gold jewellery sales in the UAE.

Gold purchases during the festive season are considered auspicious, and the recent price decline has encouraged many families to bring forward their purchases.

According to Abdulla, lower prices typically attract increased buying from NRIs and Indian tourists, who view price dips as an opportunity to purchase jewellery at a more attractive rate.

Dubai Gold Prices Fall Below Dh500

Gold prices in Dubai and across the UAE fell below the Dh500-per-gram mark over the weekend.

The latest rates were:

24K gold: Dh499 per gram
22K gold: Dh462 per gram
21K gold: Dh443 per gram
18K gold: Dh379.75 per gram

The lower prices are expected to support demand as shoppers prepare for the upcoming festive celebrations.

Diwali Campaign to Offer Gold Raffles

The Dubai Jewellery Group is also preparing a special Diwali campaign to encourage festive shopping.

The campaign will run from October 24 to November 12 across participating jewellers. Customers will have access to special offers, along with opportunities to enter raffles featuring 1kg of gold as prizes.

The campaign is expected to add further momentum to jewellery sales during the peak festive shopping period.

Price Drop Creates Bigger Savings for Buyers

Chirag Vora, managing director of Bafleh Jewellers, said Navratri, Dhanteras and Diwali strongly influence gold-buying sentiment because of the cultural importance attached to purchasing gold as a symbol of prosperity.

He said the combination of falling prices and the festive season is creating a stronger incentive for buyers.

Many customers are also using store price-lock facilities, allowing them to secure current gold rates and arrange delivery during the peak festive period.

Dubai Remains Attractive for Indian Buyers

Vora said NRIs and Indian tourists generally purchase higher volumes when gold prices decline.

Dubai gold prices are linked to international spot rates, while buyers in India face import duties and GST on gold. As a result, a fall in international gold prices can increase the potential savings for cross-border buyers.

He added that although rising prices can sometimes encourage buyers to purchase gold in anticipation of further increases, price declines tend to generate stronger physical demand and higher transaction volumes among tourists and NRI customers.

Festive Season Expected to Support Gold Sales

With Navratri, Dhanteras and Diwali approaching, Dubai's jewellery sector is expecting continued interest from Indian visitors, NRIs and local shoppers.

The combination of lower gold prices, festive buying traditions and promotional campaigns could provide additional momentum to Dubai's gold jewellery market during one of its busiest periods of the year.