Why are expats still buying gold in UAE this Diwali?

Dubai: Gold prices in the UAE remain close to record highs, but festive demand shows no sign of slowing.

During the weekend, 24K gold stood between Dh510-Dh512 per gram and 22K at Dh472-Dh474, after touching new peaks of Dh523 and Dh485 on Friday before easing Dh13.

Jewellery retailers say Diwali shoppers — especially Indian expats — are still buying, though in smaller quantities and lighter designs. Many are also taking advantage of exchange deals to balance the cost.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.) For expats tracking gold back home, the trend in India remains sharply upward.

ICICI Bank Global Markets expects gold prices to stay firm through the rest of 2025, in a range of ₹1.20–₹1.35 lakh per 10 grams, rising further to ₹1.30–₹1.45 lakh in the first half of 2026.

Weak rupee helps

The outlook assumes a rupee range of ₹87–₹89 per US dollar, but analysts warn prices could climb faster if the rupee weakens or global gold extends its rally. Against the US dollar, the Indian rupee was at ₹87.95, while at ₹23.84 vs. Dh1, ahead of the weekend. (Check live forex rates here.)

On the Multi Commodity Exchange (MCX), gold now trades around ₹1.31 lakh per 10 grams, up 16% in a month, lifted by both a stronger global market and a depreciating rupee. Analysts see prices reaching ₹1.50 lakh per 10 grams in the coming months, citing strong buying by central banks and robust demand in China and Japan.

Despite higher global prices, UAE retailers report steady footfall. Shoppers continue to buy jewellery for weddings and gifting, taking advantage of Dubai’s lower making charges and transparent pricing.

With both the dirham and rupee closely tied to global gold sentiment, expats see the metal as a safe, inflation-resistant investment — one that still shines brightest during Diwali.