Diwali 2025: How Dubai shoppers keep buying gold jewellery despite record prices

Dubai: Dubai’s Gold Souq is alive again. Ahead of Dhanteras and Diwali, shoppers are weaving through narrow lanes lined with gold-laden displays, pausing to compare bangles, coins, and chains that glint under the bright shop lights. The difference this year is in strategy. Gold prices may be hovering near all-time highs, yet buyers are not turning away, they’re adapting.

By Saturday morning, 24K gold was trading at Dh510.50, while 22K stood at Dh472.75, reflecting the global surge that has pushed bullion to more than $4,300 an ounce. The rally has made 2025’s festive season the most expensive Diwali on record, yet Dubai’s jewellers say demand remains resilient, powered by cultural significance and shifting buying patterns.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

“Yes, we’re already seeing a strong uptick in demand as Diwali and Dhanteras approach," said Dr. Joy Alukkas, Chairman of Joyalukkas Group. These occasions hold deep emotional and cultural significance, plus gold continues to be the most cherished symbol of prosperity and celebration."

Lighter designs, smarter spending

The trend on the ground is that shoppers are choosing lighter, more wearable jewellery over heavy, ornate sets. Jewellers say this shift is both a practical response to soaring prices and a reflection of changing lifestyles.

“Gold continues to be valued both as a long-term investment and as an integral part of traditions, with purchases being largely occasion-driven rather than discretionary,” said Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers. “While customers plan their purchases within defined budgets, they continue to invest in jewellery for key life events and festive occasions. We are upbeat about the festive season, supported by healthy pre-bookings, fresh collections, and campaigns.”

Kalyanaraman added that the preference for lightweight pieces complements, rather than replaces, traditional buying habits. “We are witnessing a parallel demand for lighter, everyday-wear pieces, driven by changing lifestyles and the growing preference for versatile designs that combine style, comfort, and value,” he said.

Retailers like Bafleh Jewellery report the same trend, with a sharp rise in demand for Italian-inspired designs weighing as little as half a gram. “Lightweight is definitely for the next generation,” said Viraj Shah, General Manager. “The pieces are practical, stylish, and still carry the emotional value people associate with gold.”

Here’s how to buy jewellery smartly this Diwali

For many Indian families in the UAE, gold remains both an emotional and financial anchor. While prices are steep, there are ways to make the most of this season’s purchases.

• Opt for lighter, versatile pieces: Choose 18K or 22K designs that blend style with affordability. Lightweight jewellery now carries the same sparkle at a fraction of the cost.

• Buy in instalments or pre-book: Many retailers offer fixed-price booking schemes, allowing buyers to lock in rates before further increases.

• Look beyond weight: Value is increasingly in design and craftsmanship. Brands are competing on innovation rather than just grams.

• Choose certified pieces: Even small purchases should come with proper certification and hallmarking for purity and resale assurance.

A shift in gifting trends

For gifting purposes, buyers are opting for smaller pieces, coins, or simple pendants, a more practical approach that allows them to keep the tradition alive without stretching budgets.

“The heavier pieces are definitely more difficult to sell, so ahead of Diwali, when people want to gift, they are opting more for lighter-weight jewellery,” said Arjun Dhanak, Director at Kanz Jewels.

Dhanak expects prices to remain firm for the rest of the year. “If we look at the last 10 years, the last quarter of every year, the gold prices have gone up. So, I do expect it to go up. There will be a correction, but I don’t expect it to be as significant,” he said.

Even as everyday buyers adjust, the luxury end of the market continues to thrive. According to Nishith Shah, CEO of La Marquise Fine Jewellery, high-end clients are still purchasing elaborate designs paired with diamonds and coloured stones.

“Yes, we do see a surge in demand for jewellery ahead of Diwali and Dhanteras, especially from clients seeking luxurious and exclusive designs,” Shah said. “Statement pieces and heavier creations often paired with certified natural diamonds or coloured stones move strongly, as they represent both adornment and a meaningful investment during the festive season.”

At the Deira Gold Souq, the mood is unmistakably festive. Prices may have soared, but the cultural pull remains undiminished.