Some expat and non-resident Indian (NRI) families are bringing forward their festive purchases as gold prices drop below Dh500 ahead of the Indian festivals of Navratri, Dhanteras and Diwali, Dubai jewellers said.
Industry leaders said the season running from Navratri through Dhanteras and Diwali is among the most important periods of the year for gold jewellery in the UAE.
Tawhid Abdulla, chairman of the Dubai Jewellery Group, said buying gold at this time is considered auspicious. “The festive season, from Navratri through Dhanteras and Diwali, is one of the most important periods of the year for gold jewellery in the UAE, particularly for jewellers serving the South Asian community. Buying gold at this time is considered auspicious, and the lower prices have come at an ideal moment. Many families are bringing forward their festive purchases,” added Abdulla.
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Abdulla noted that price dips generally bring more buying from NRIs and Indian visitors, as they see them as a good price point. “There is definitely a price advantage for Indian tourists when purchasing jewellery in Dubai.” The Dubai Jewellery Group will run a Diwali campaign across participating jewellers from October 24 to November 12, with attractive offers and 1kg gold raffles.
Gold prices fell below the Dh500-per-gram mark again in Dubai and the UAE over the weekend, with 24K closing at Dh499 per gram. Among other variants, 22K, 21K and 18K slipped to Dh462, Dh443 and Dh379.75 per gram, respectively.
Widening net savings
Chirag Vora, managing director of Bafleh Jewellers, noted that festivals like Navratri, followed by Dhanteras and Diwali, heavily influence sentiment due to the cultural emphasis on purchasing gold as a symbol of prosperity.
“The combination of the price drop and festive timing creates a compound effect. Many buyers are utilising store price-lock facilities to fix current rates for guaranteed delivery during peak festival days,” he said, adding that NRIs and Indian tourists buy higher volumes when prices fall.
“Dubai gold is priced at international spot rates, bypassing the import tariffs and GST levied on gold in India. A price drop widens the net savings margin for cross-border buyers. While rising prices can occasionally trigger short-term buying out of anticipation of further increases, price dips consistently deliver the highest physical volumes and overall transaction counts among tourists and NRI demographics,” added Vora.
For NRIs and Indian tourists, Anil Dhanak, managing director of Kanz Jewels, said the relationship between price and buying behaviour is slightly different.
“A fall in prices generally creates a stronger immediate buying opportunity because consumers feel they are getting better value. However, gold also has an emotional and long-term investment dimension. When prices rise sharply, it can create urgency among some buyers who do not want to wait and potentially pay more later. So, while lower prices encourage value-driven purchases, rising prices can sometimes create a sense of urgency.
“Ultimately, jewellery buying is not determined by the gold rate alone. Design, purity, craftsmanship, occasion and the customer’s personal requirements continue to be important factors. A price correction simply gives consumers an additional reason to act,” he added.
Buying gold in UAE is a ‘ritual’
John Paul Alukkas, CEO of Joyalukkas Jewellery, said the festive season brings people in with intent, but this year, the price movement is giving that intent an extra push.
“It’s less about convincing people to buy and more about giving them one more good reason to do what they were already planning to do. For our NRI customers and Indian tourists, gold isn’t just jewellery; it’s a considered purchase, often planned around visits home, weddings or festivals. When prices fall, that segment tends to move quickly because they see it as locking in value before their travel dates or family celebrations,” added Alukkas.
“Interestingly, though, we also see purchases continue even when prices rise, simply because for many NRIs, buying gold in the UAE has become a ritual tied to visits rather than price alone. So while a price dip does accelerate decisions, the underlying demand from this segment remains fairly resilient either way,” said Alukkas.
Source: Khaleej Times