UAE shoppers outsmart rising costs to keep Diwali gold traditions alive

Gold jewellery buyers across the UAE are becoming more cautious as the cost of living rises, but retailers say the tradition of purchasing gold during Diwali remains strong.

Jewellers and industry representatives report that shoppers are setting budgets, comparing prices and timing their purchases more carefully ahead of Dhanteras on November 6 and Diwali on November 8 in the UAE.

Rising household expenses, including housing rents, school fees, groceries, healthcare and dining, have put pressure on residents’ budgets. Despite these challenges, gold continues to hold cultural and financial significance for many families.

UAE Buyers Plan Gold Purchases Around Their Budgets

Anil Dhanak, Managing Director of Kanz Jewels, said customers generally prioritise essential expenses before purchasing jewellery, making them more conscious of their spending.

However, he noted that gold remains an important symbol of prosperity and a store of value, adding that the company expects strong sales during the festive season.

Niraj Bhakare, AVP and Chief Sales and Marketing Officer, International Business, at Titan Company Limited, said shoppers are taking more time to compare options, prioritise their needs and select jewellery that offers lasting value and personal significance.

Many customers continue to purchase gold for gifts, personal milestones and special occasions, even as they become more selective about their spending.

Falling Gold Prices Encourage Festive Shopping

Recent movements in gold prices have provided some relief to UAE buyers.

On Monday morning, 24K gold in Dubai traded at Dh481.50 per gram, while international spot gold stood at approximately $4,007 per ounce.

The decline in prices has encouraged some non-resident Indian (NRI) and expatriate families to bring forward their festive jewellery purchases, particularly when Dubai gold prices fell below Dh500 per gram.

For buyers planning to purchase jewellery for Dhanteras and Diwali, price movements remain an important consideration when deciding when and how much gold to buy.

Global Data Shows Declining Jewellery Demand

The cautious approach among UAE shoppers reflects a broader trend in the international gold jewellery market.

According to the World Gold Council’s Q2 2026 Gold Demand Trends report, global jewellery demand declined by 17 per cent year on year as consumers purchased less gold and increasingly opted for lighter products.

However, the value of jewellery demand during the first half of the year increased by 22 per cent to $86 billion.

The figures indicate that although consumers are buying less jewellery by volume, higher gold prices have increased the overall value of purchases.

Lightweight and Versatile Jewellery Gains Popularity

Retailers across the UAE are observing a shift towards lightweight, versatile designs that balance affordability, everyday use and investment value.

Shamlal Ahamed, Managing Director of International Operations at Malabar Gold and Diamonds, said consumers are not significantly reducing their purchases but are becoming more selective and value-conscious.

He highlighted growing demand for lightweight lifestyle jewellery that customers can wear regularly while retaining some investment value.

Buyers are also planning their purchases in advance and using gold rate protection schemes to manage price fluctuations and maximise value.

Chirag Vora, Managing Director of Bafleh Jewellers, said economic pressures and changing gold prices have encouraged customers to plan their spending more carefully.

In response, the retailer has introduced flexible purchasing options and curated collections to meet changing customer preferences.

Festive Offers Matter, but Quality and Trust Remain Important

Meena Jewellers said customers are comparing prices, setting spending limits and choosing designs that suit both their celebrations and budgets.

Festive promotions can offer additional value, but shoppers continue to prioritise trust, product quality and designs that meet their preferences.

For many UAE residents, purchasing gold during the festive season remains an important tradition. However, customers are increasingly balancing cultural expectations with practical financial considerations.

UAE Gold Buying Traditions Remain Strong Ahead of Diwali

The Dubai Jewellery Group said inflation naturally affects discretionary spending, but gold continues to serve as both a cherished purchase and a savings instrument.

The group noted that consumers may reduce the quantity of gold they buy without abandoning the tradition itself.

As Dhanteras and Diwali approach, UAE jewellers expect shoppers to remain interested in festive purchases while paying closer attention to budgets, prices and value.

The shift towards lighter jewellery, flexible payment options and advance purchase planning reflects how buyers are adapting to rising living costs while maintaining their long-standing connection with gold.