Falling Gold Prices Bring Festive Cheer to UAE’s Indian Community Ahead of Dhanteras and Diwali.
Gold prices in Dubai and international markets rebounded on Thursday morning after declining by more than 1% during Wednesday’s late trading session.
Despite the recovery, the price of 24-karat gold in Dubai remained below the Dh500-per-gram mark, offering some relief to jewellery buyers ahead of the festive season.
According to figures released by the Dubai Jewellery Group, 24K gold opened at Dh499.75 per gram on Thursday, compared with Dh492.75 per gram at Wednesday’s market close.
Other gold categories also recorded the following opening prices:
- 22K gold: Dh462.75 per gram
- 21K gold: Dh443.50 per gram
- 18K gold: Dh380.25 per gram
Lower Gold Prices Bring Relief Ahead of Dhanteras and Diwali
The recent decline in gold prices has been welcomed by shoppers across the UAE, particularly members of the Indian community, which represents the country’s largest expatriate population.
With Dhanteras and Diwali approaching, demand for gold traditionally increases as families purchase jewellery, coins and bars to mark the auspicious occasions.
Gold buying during these festivals is widely associated with prosperity, good fortune and financial well-being.
The softer prices could help households make better use of their festive shopping budgets, allowing them to purchase larger quantities of gold or consider heavier jewellery designs.
Global Gold Prices Recover After Wednesday’s Decline
International precious metal markets also showed signs of recovery on Thursday morning.
Spot gold climbed 1.4% to $4,144 per ounce, while silver increased 0.4% to $205.70 per ounce.
The rebound followed a decline of more than 1% in gold prices late on Wednesday.
The earlier sell-off was linked to stronger-than-expected US inflation data, which increased market expectations that the US Federal Reserve could raise interest rates later this month.
Higher interest rate expectations can put pressure on gold because the metal does not generate interest income, potentially making other investments more attractive.
Expert Highlights Inflation, Interest Rates and Geopolitical Risks
Simon-Peter Massabni, Head of Business Development at XS.com, said gold prices are being influenced by a complex combination of monetary policy developments, geopolitical uncertainty and changing inflation expectations.
He explained that recent price movements should not be assessed solely on the basis of gold’s latest decline or its proximity to particular technical support levels.
Instead, investors need to consider the broader economic environment, where several competing factors are shaping the precious metal’s direction.
According to Massabni, movements in the US dollar, expectations surrounding future interest rates and demand for safe-haven investments are all playing important roles in determining gold’s next price trend.
These competing influences could continue to affect the market as investors monitor economic data, central bank decisions and geopolitical developments.
