Dubai gold prices jump over Dh11 per gram ahead of Dhanteras, Diwali

Gold prices in Dubai surged by more than Dh11 per gram on Thursday morning, reaching a two-week high as 24K gold moved closer to the Dh500 mark. The rise comes ahead of Dhanteras and Diwali, two major Indian festivals traditionally associated with gold and jewellery purchases.

According to data from the Dubai Jewellery Group, 24K gold was trading at Dh498.75 per gram at Thursday's market opening, compared with Dh487.50 on Wednesday.

Other gold categories also recorded significant increases, giving buyers another reason to monitor prices before making their festive purchases.

Dubai Gold Prices Rise Across All Categories

Gold prices increased across different purity categories on Thursday morning. Here are the latest retail rates:

The increase reflects a strong recovery in the international gold market, with 24K gold approaching Dh500 per gram once again.

International Gold and Silver Prices Rally

International precious metal prices also recorded a sharp rise.

Spot gold increased by 5.3%, gaining $211 to reach $4,141 per ounce. Meanwhile, silver prices climbed 6.8% to $53.11 per ounce.

Gold had recently fallen below the $4,000-per-ounce level before recovering during the latest trading session.

The rally was supported by a weaker US dollar and declining US Treasury yields following a Democratic wave in the midterm elections.

Dhanteras and Diwali Increase Gold Buying Interest in Dubai

The rise in gold prices comes just ahead of two important Indian festivals: Dhanteras on Friday, November 6, and Diwali on Sunday, November 8.

Dhanteras is considered an auspicious occasion for purchasing gold, silver and jewellery. Many people view these purchases as symbols of prosperity, good fortune and new beginnings.

Dubai and the wider UAE typically experience increased demand for gold during this festive period. Indian expatriates and other residents visit jewellery stores to purchase gold coins, bars, necklaces and traditional ornaments.

Known as the City of Gold, Dubai attracts festive shoppers with its wide selection of jewellery designs, competitive pricing and tax-efficient shopping options.

Jewellery retailers also introduce special promotions and offers to attract customers during the season.

What Is Supporting Gold Prices?

Despite recent fluctuations, gold continues to receive support from several long-term market factors.

Linh Tran, Market Analyst at XS.com, said the fundamental factors supporting gold demand remain in place. However, she highlighted the importance of distinguishing between factors that maintain demand and those that can push prices higher.

Central bank purchases remain an important part of the global gold market.

According to the World Gold Council, central banks purchased approximately 321 tonnes of gold on a net basis during the third quarter of 2026. This represented a 42% increase compared with the same period last year.

Total central bank gold purchases during the first nine months of 2026 reached 675 tonnes.

Central Banks Continue to Support Gold Demand

Gold remains an important asset in central bank reserve portfolios, particularly for countries looking to reduce their dependence on specific currencies or groups of financial assets, including the US dollar.

Tran noted that demand for gold accumulation has continued despite elevated prices. However, she also cautioned that the available figures include estimates of undisclosed transactions.

As a result, central bank buying should not be treated as a definite indication of further price increases.

What Gold Buyers in Dubai Should Watch

With 24K gold nearing Dh500 per gram, festive shoppers in Dubai will be closely watching market movements ahead of Dhanteras and Diwali.

International gold prices, currency movements, US Treasury yields and central bank purchases could continue influencing local rates.

For buyers planning festive jewellery purchases, comparing daily gold rates and checking making charges and retailer promotions can help them make more informed decisions.