Gold Prices Drop Sharply in UAE Post-Diwali: Is It the Right Time to Buy?

Gold prices in the UAE have experienced a significant decline following the Diwali festival, creating a favorable window for potential buyers. This post-festival price correction has been attributed to a combination of global market dynamics and reduced demand after the festive season.

Current Gold Prices in the UAE

As of October 22, 2025, the price of 24-karat gold in Dubai has fallen to approximately Dh484 per gram, down from a peak of Dh525.25 per gram just days earlier. Similarly, 22-karat gold is now priced around Dh448 per gram. This sharp decline marks the most significant post-Diwali drop in recent years, offering a potential opportunity for buyers who have been waiting for lower prices.

Factors Influencing the Price Drop

Several factors have contributed to the recent decrease in gold prices:

• Profit-Taking: After a period of record highs, investors have been selling off gold to lock in profits, leading to a market correction.
• Stronger U.S. Dollar: An appreciating U.S. dollar has made gold more expensive for holders of other currencies, reducing demand.
• Reduced Demand Post-Festival: The end of the Diwali festival has led to a natural slowdown in gold purchases, contributing to the price drop.

Is It the Right Time to Buy?

For consumers and investors considering purchasing gold, the current price levels may present a more attractive entry point compared to the recent highs. However, it’s important to note that gold prices remain relatively elevated compared to historical averages. Experts advise potential buyers to monitor market trends closely and consider their long-term investment goals before making a purchase.

Conclusion

The recent decline in gold prices in the UAE offers a timely opportunity for those looking to invest in the precious metal. While the current prices are lower than the peaks observed during the Diwali festival, they still reflect a premium over historical norms. Prospective buyers should stay informed about global market developments and consult with financial advisors to make well-informed decisions.