Gold Is Dh35 a Gram Cheaper Than Last Diwali, but UAE Buyers Are Opting for Lighter Designs.
Dubai: For Indian expat families across the UAE, buying jewellery remains an important part of the Dhanteras and Diwali celebrations. But after a year of sharp movements in gold prices, festive shopping is increasingly being driven by budgets, practicality and the search for value.
Jewellers say customers are not turning away from gold. Instead, many are opting for lighter chains, smaller bangles and contemporary designs. Natural diamonds and coloured gemstones are also gaining popularity alongside traditional 22-karat gold jewellery.
The shift reflects a more considered approach to festive spending. Shoppers still want a meaningful purchase to mark the occasion, but are paying closer attention to what they buy and how much they spend.
With Dhanteras falling on November 6 and Diwali on November 8 this year, retailers are gearing up for a busy festive season. However, buyers remain mindful of gold rates, which continue to be influenced by a range of global factors.
John Paul Alukkas, CEO of Joyalukkas Jewellery, said the festive shopping basket had changed considerably over the past five years.
“If I look back five years, the festive basket was heavily dominated by traditional, heavier bridal sets and classic gold. Today, the mix is far more dynamic. Our top sellers right now are lightweight gold chains, versatile diamond pendants and everyday-wear bangles.”
He said the change was not necessarily about consumers buying fewer pieces, but about choosing jewellery they could wear beyond a particular festival or occasion.
“The shift isn’t about customers buying less, it’s about them buying smarter. They want pieces that offer the festive feeling but can seamlessly transition into their everyday wardrobe. It’s a beautiful blend of tradition meeting modern practicality.”
Lightweight gold and everyday designs lead the shift
Across jewellery retailers, lightweight pieces are emerging as a popular response to higher gold prices, although traditional designs continue to feature prominently during festivals and weddings.
Shamlal Ahamed, managing director of international operations at Malabar Gold & Diamonds, said customers were showing interest in a wider range of collections, from natural diamonds and precious gemstones to contemporary, stackable gold jewellery.
“Over the past five years, consumer preferences have become increasingly diverse. While traditional gold jewellery continues to remain a festive favourite, customers are also embracing lightweight, contemporary designs, natural diamond jewellery, coloured gemstones, and everyday-wear pieces that offer both style and value,” Ahamed said.
At Bafleh Jewellers, traditional 22-karat gold jewellery, particularly necklaces, bangles and chains, continues to attract buyers. The retailer is also seeing demand for lightweight everyday pieces, diamonds and contemporary designs.
Chirag Vora, managing director of Bafleh Jewellers, said customers had become more conscious of both design and price as gold prices climbed.
“Customers are increasingly looking for pieces that offer aesthetic appeal, cultural significance and long-term value.”
At Kanz Jewels, the product mix also reflects the UAE’s diverse customer base. Anil Dhanak, managing director of Kanz Jewels, said Indian customers continued to favour 22-karat gold jewellery for festivals, weddings and gifting, while Western customers generally showed a stronger preference for 18-karat pieces.
The contrast highlights how jewellers are catering to different cultural traditions, personal tastes and budgets as the wider market adapts to changing gold prices.
How are shoppers managing gold prices?
Gold prices have been volatile in 2026, making the timing of purchases an important consideration for shoppers planning their festive spending.
On November 3, 22-karat gold in Dubai was priced at Dh439.25 per gram, while 24-karat gold stood at Dh474. On Diwali last year, October 20, 2025, the corresponding rates were Dh474.25 and Dh512.25 per gram.
This puts the 22-karat rate around Dh35 per gram below its level on the same festive occasion last year. The 24-karat rate is lower by Dh38.25 per gram, or roughly 7%. These are indicative gold rates and do not include jewellery-making charges or other applicable costs.
However, the year-on-year comparison captures just one point in an especially turbulent period for gold. Prices surged to a record of around $5,595 an ounce in January before retreating sharply towards $4,000. The decline came amid changing expectations around US interest rates, a stronger dollar and the impact of the Iran war on oil prices and bond yields.
For buyers, the recent pullback offers some relief compared with last year’s festive peak, but uncertainty over where prices will head next remains.
Alukkas said customers were responding to this uncertainty by changing the mix of jewellery they purchased rather than simply waiting for gold prices to fall further.
“It’s a fascinating shift in behaviour. Are they buying fewer grams? Yes, on average. Are they spending more overall? Also, yes. And are they holding off? Some are, but the majority are simply pivoting.”
Alukkas said many customers were sticking to similar budgets but choosing lighter pieces with more intricate designs. Others were exchanging old gold or considering diamond jewellery instead of heavier gold sets.
Bafleh’s Vora described a similar trend. Some shoppers are maintaining their planned spending while buying fewer grams, while others are opting for smaller pieces to stay within budget.
Kanz Jewels’ Dhanak said rising prices had not diminished consumers’ desire to buy gold on auspicious occasions.
“When prices rise, consumers tend to adjust their budgets by purchasing lighter pieces or fewer grams rather than abandoning their purchases altogether. We therefore remain optimistic about festive demand.”
For many households, the decision goes beyond the daily gold rate. Gifting, weddings and long-standing family traditions continue to shape when and why jewellery purchases are made.
Can buying schemes help shoppers?
Jewellers are also offering advance-payment plans, exchange programmes and festive promotions to make purchases more affordable and manageable.
Malabar Gold & Diamonds said its scheme, which allows customers to pay a 25% advance and lock in the prevailing gold rate, had proved particularly popular during the festive season.
“Rather than postponing purchases, many are actively seeking ways to maximise value through planned buying,” Ahamed said.
Such schemes can help customers manage the risk of prices rising before they complete a planned purchase. However, buyers should read the terms carefully, checking whether the gold rate is genuinely locked in, how cancellations are handled and whether any additional conditions apply.
Exchange programmes offer another option for those with old jewellery they no longer wear. Trading existing gold for a new design can reduce the additional cash required, although the final exchange value depends on the jewellery’s weight and purity, applicable deductions and the retailer’s terms.
Ultimately, shoppers should focus on the total bill rather than the advertised gold rate alone. Making charges, gemstone costs and applicable taxes can add significantly to the price of a finished piece.
What are jewellers expecting this Dhanteras and Diwali?
Despite uncertainty over gold prices, jewellers remain broadly optimistic about festive demand. However, they expect buying preferences to continue evolving.
Malabar Gold & Diamonds expects festive purchases and the approaching wedding season to support demand.
“For many families, buying gold during Dhanteras and Diwali is not just a purchase decision but also a cherished tradition, and we expect that sentiment to continue driving strong demand,” Ahamed said.
Joyalukkas expects the overall value of jewellery purchases to remain healthy, even if customers buy fewer grams of gold.
“If prices keep climbing, I expect the volume of gold in grams to adjust, but the overall value of purchases to remain robust. Customers will lean towards beautiful, lighter designs, diamonds or take advantage of our exchange programs,” Alukkas said.
Bafleh also expects festive buying to remain significant, although further price increases could make shoppers more cautious. Vora said consumers were likely to prioritise lightweight jewellery, smaller purchases and designs that balance affordability with visual appeal.
He added that purchasing power and consumer confidence, alongside gold prices, would play an important role in determining the season’s performance.
Will gold prices rise or fall from here?
The near-term outlook for gold remains uncertain. Factors such as elevated US Treasury yields, a stronger dollar and expectations of another interest rate hike in December could weigh on prices. Several analysts have also revised their gold forecasts for 2026 and 2027.
On the other hand, continued central-bank buying, physical demand and concerns over government debt and currency depreciation could provide support to the precious metal.
These forecasts are estimates, not guarantees, and gold prices can move sharply in either direction. UAE retail rates will also continue to track movements in international bullion prices.
For shoppers debating whether to buy now or wait for prices to fall further, predicting the exact market bottom is impossible. Those purchasing jewellery for a wedding or festival on a fixed date may be better off setting a budget and choosing a piece they can comfortably afford, rather than basing their decision on market predictions.
Buyers with greater flexibility can track gold rates over several days, compare making charges across retailers and check whether advance-payment schemes offer genuine protection against further price increases. Splitting a purchase into smaller instalments may also help spread the risk of buying at a single price, although it does not guarantee a lower overall cost.
As Dhanteras draws closer, gold’s enduring appeal remains unchanged. What is evolving is how families choose to make their festive purchases, balancing tradition and sentiment with affordability and everyday practicality.
