UAE shoppers: Why gold isn’t always cheaper on Eid, Diwali despite discounts

Dubai: In the UAE, where gold shopping is a cultural staple and a financial strategy, many residents rush to buy jewellery or coins during festive seasons like Diwali or Eid—believing they’ll secure the best prices.

But the reality? Gold isn’t inherently cheaper during these times. In fact, you might end up paying more than you would in quieter months.

Demand surges, so do prices

Gold prices are largely set by global markets, but local festive demand plays a powerful role, especially in UAE retail pricing. Diwali and Eid are peak seasons when families and investors flood gold shops across Dubai, Sharjah, and Abu Dhabi. That high demand often holds prices up, or even pushes them higher—regardless of international trends.

“Many buyers assume prices dip during festivals due to promotions,” said one Dubai-based jeweller. “But in reality, these are the busiest days, and margins tighten due to demand pressure.”

Special offers aren’t always savings

Jewellers in the UAE do offer Diwali and Eid promotions, but these often target making charges, not the gold rate itself. While you may find deals like zero making charge, free gold coins, or gift vouchers, the base price of gold may be as high—or higher—than at other times of the year.

Some retailers offer price protection schemes, letting customers lock in a rate in advance. These can help mitigate short-term volatility, but only if timed right.

Festivals don't guarantee price lows

Gold is notoriously volatile, with prices changing multiple times a day. Some years, prices have peaked right before Diwali or Eid due to inflation fears, global tensions, or changes in US interest rates. Other times, they’ve dropped unexpectedly post-festival.

There’s no fixed pattern, making it risky to assume that buying during festivals ensures a bargain.

So, when should you buy?

If your goal is savings, consider off-peak periods. Industry watchers suggest that July to September, or the weeks right after a major festival, can offer better price dips due to subdued demand.

For those buying for cultural or traditional reasons, there’s still room to save: compare making charges, watch for retailer schemes, and monitor global gold trends via UAE gold price apps or websites.

Final word for UAE buyers? Festivals are a great time to celebrate with gold—but don’t let the sparkle of Diwali lights or Eid celebrations blind you to price realities. The best deal isn’t always during the loudest sale. Sometimes, buying before or after the festival rush may help you walk away with more gold for less dirhams.