Gold prices in Dubai rose by more than 11 dirhams per gram ahead of Dhanteras and Diwali festivals

According to jewelers, consumers in the United Arab Emirates are increasingly looking to lock in gold prices ahead of the Dhanteras festival, which falls on Friday, November 6th. Currency volatility is prompting buyers to plan purchases earlier than usual.

On Wednesday morning in the UAE, the prices for 24-carat and 22-carat gold were AED 484 and AED 448.25 per gram, respectively. However, over the weekend, the price of 24-carat gold dropped to AED 467 per gram, leading residents of the UAE to secure the prices offered by leading jewelry stores before the festival begins.

Chirag Vora, Managing Director and CEO of Bafleh Jewellers, noted that customers are becoming more mindful of timing, and locking in prices gives them 'greater confidence' in planning purchases without fear of sudden cost increases. The greatest interest is shown by those planning large purchases, including wedding jewelry and festive shopping.

Anil Dhanak, Managing Director of Kanz Jewels, stated that price protection schemes are becoming more attractive to clients who have already decided to buy. This trend is particularly noticeable among Indian expats, for whom Dhanteras is an auspicious occasion for purchasing gold jewelry.

The 'Diwali Gold Rush' promotion, running until November 12th at over 170 jewelry stores, offers buyers a share of 1 kg of gold. Customers who spend AED 1500 on jewelry at a participating store qualify for a draw. Five winners will receive 100g of gold each as Dhanteras prizes, and the grand prize will be 500g.

This promotion is organized by the Dubai Festivals and Retail Establishment (DFRE), which is part of the Dubai Department of Economy and Tourism (DET), and is part of the celebration of the Festival of Lights.

Participating brands include Arakkal Gold & Diamonds, Kanz Jewels, Bafleh Jewellery, Jawhara, La Marquise Diamonds & Watches, Lifestyle Fine Jewelry, Tajvi Gold & Diamonds, Thangals, Meena Jewellers, Kundan Kala Jewellery, and Malabar Gold & Diamonds. Some jewelers also offer discounts, purchase gifts, and special manufacturing terms.

Both retailers noted that buyers are considering more than just the gold rate. Vora emphasized that buyers evaluate the manufacturing cost, design variety, metal purity, and overall shopping experience, considering transparent pricing key to building trust. Dhanak advised customers to consider the total value, including craftsmanship, purity, and manufacturing costs.

Both leaders expect increased buying interest as Dhanteras approaches. Vora observed that young consumers are joining traditional gold jewelry buyers, while Dhanak pointed to Dubai's well-regulated market and pricing transparency as strengths for buyers.

Gold prices in Dubai showed a decline on Wednesday morning, as the 24-karat version of the precious metal lost 2.5 dirhams this week and 10.75 dirhams over the last month, which provided relief for investors shortly before the Diwali festival.

At the opening of markets on Wednesday, 24K gold traded at 486.5 dirhams per gram, lower than the 489 dirhams recorded at the close of markets on Tuesday. Other varieties of yellow metal—22K, 21K, 18K, and 14K—traded at prices of 450.5, 432, 370.25, and 288.75 dirhams per gram, respectively.

Globally, the spot price of gold dropped by 0.66 percent, reaching $4034.46 per ounce according to UAE time at 9:40 AM. Silver also decreased by 0.98 percent, trading at $53.92 per ounce.

Ross Maxwell, Strategy Director at VT Markets, noted that demand for yellow metal continues to be supported by structural demand, including central bank purchases and geopolitical uncertainty.

Maxwell explained that the upcoming US midterm elections in November could create a more favorable environment if expectations of reduced fiscal expansion lead to lower yields and a weakening of the US dollar. He stated that this could strengthen gold's prospects beyond temporary demand for capital preservation around election day.

Nevertheless, he added that persistent inflation and tight Federal Reserve policy could keep real yields high, limiting gold's recovery. Maxwell believes that a more convincing bullish signal will appear if gold establishes higher highs while real Treasury yields and the DXY index decline simultaneously.

In Maxwell's view, the US midterm elections on November 3rd could be a significant catalyst for financial markets, as investors will assess how a potential shift in Congressional control will affect fiscal policy, inflation, and interest rates. However, the biggest market reaction may depend not on which party wins, but on how closely the result aligns with what investors already expected.

Gold prices in Dubai showed a recovery on Monday morning, following a decline of more than 20 dirhams per gram throughout October.

According to data from Dubai Jewellery Group, the price of 24-karat gold on Monday morning was 484.0 dirhams per gram, which is higher than the figure of 481.5 dirhams per gram recorded at the close of trading over the weekend. In early October, the 24K option traded at approximately 500 dirhams per gram.

Similarly, other varieties also opened with an increase at the beginning of the week: 22K, 21K, and 18K gold traded at prices of 448.25, 429.75, and 368.25 dirhams per gram, respectively. The most affordable option, 14K, continued to trade below 300 dirhams per gram on Monday, reaching the mark of 287.25 dirhams.

Spot gold rose by 0.38 percent, reaching $4013.86 per ounce. Silver traded at $199.26 per ounce, increasing by 0.28 percent.

Naeem Aslam, Director of Investments at Zaye Capital Markets, noted that gold is struggling to attract stable demand as a safe-haven asset despite escalating geopolitical uncertainty. He pointed out that President Donald Trump's statement that the United States is not negotiating with Iran, as well as his warning about possible imminent developments, heightened concerns about further military confrontation and energy supply disruptions.

Aslam added: 'The immediate problem for gold is that geopolitical tension generates competing market forces. Although conflict escalation usually prompts investors to seek shelter in bullion, rising oil prices can intensify inflationary expectations and increase the likelihood of maintaining high interest rates. This raises the opportunity cost of holding gold and makes the psychological support level of $4000 particularly important.'

On Monday morning, oil prices showed a downward trend after a strong rise last week. WTI and Brent crude oil traded at prices of $101 and $114.5 per barrel, respectively, falling by 2.18 percent and 1.89 percent.