Dubai gold prices shed Dh9.5 per gram, surrender most of Thursday’s gains ahead of Diwali

Gold prices in the UAE declined sharply on Friday morning, November 6, reversing most of the gains recorded during the previous trading session. The decline came as global precious metal prices faced pressure amid concerns over rising inflation linked to higher oil prices.

The price of 24K gold dropped by Dh9.5 per gram at the market opening, falling to Dh487.5 from Dh497 at Thursday's market close. The yellow metal had gained more than Dh11 per gram on Thursday morning.

The latest decline comes just ahead of Dhanteras on Friday, November 6, and Diwali, which will be celebrated on Sunday, November 8. Both festivals are traditionally associated with gold purchases in India and among Indian communities in the UAE.

UAE Gold Prices on November 6

Gold prices across different purity categories also recorded a decline on Friday morning.

Here are the latest UAE gold rates per gram:

The 24K category recorded the biggest absolute decline, losing Dh9.5 per gram compared with Thursday's closing price.

Global Gold and Silver Prices Decline

Precious metals also experienced losses in international markets.

Gold prices dropped 1.35 per cent to $4,048 per ounce, while silver prices declined 1.4 per cent to $51.61 per ounce.

The decline comes amid growing concerns about inflation as rising oil prices add pressure to the global economic outlook. Such developments can influence investor sentiment and create fluctuations in precious metal markets.

Gold Demand Remains Strong Ahead of Dhanteras and Diwali

Despite the recent price fluctuations, gold continues to attract buyers ahead of major Indian festivals.

Dhanteras and Diwali are considered important occasions for purchasing gold jewellery, coins and other precious metal products. Many families view gold as a symbol of prosperity, good fortune and financial security.

Apart from festive purchases, global demand for gold continues to receive support from central banks. Their continued accumulation reflects gold's importance as a safe-haven asset and a way to diversify investment portfolios.

Although short-term price volatility may continue, central bank buying remains one of the key factors supporting long-term gold demand.

Investors Increasingly Look Beyond Physical Gold

According to Vijay Valecha, Chief Investment Officer at Century Financial, gold continues to hold cultural and financial significance in the UAE, particularly during Dhanteras and Diwali.

However, the way investors approach gold is gradually changing. Along with its traditional association with prosperity, investors are increasingly considering global economic developments, portfolio diversification and market opportunities when making investment decisions.

Valecha also highlighted that different forms of gold investment serve different purposes.

Physical gold, exchange-traded funds (ETFs) and contracts for difference (CFDs) have different structures, risks and investment objectives. Understanding these differences is important for investors, especially when international developments can significantly influence gold prices.

Gold Market May Remain Volatile

With global inflation concerns, changing oil prices and continued central bank purchases influencing the precious metals market, gold prices may experience further short-term fluctuations.

For UAE buyers planning festive purchases, monitoring daily gold rates can help them understand market movements and make more informed buying decisions.
The latest decline offers a reminder that gold prices can change quickly depending on global economic conditions, even during periods of strong seasonal demand.