UAE gold buyers adapt to rising costs but Diwali tradition endures

Gold jewellery shoppers in the UAE have grown more budget-conscious amid a rising cost of living, yet major retailers say the Diwali tradition of buying gold remains intact.

Budget-conscious shoppers

Jewellers and trade representatives note that customers now set spending limits, compare prices and time their purchases around festive occasions. Dhanteras falls on 6 November and Diwali on 8 November in the UAE this year.

Higher oil prices have pushed up the cost of living, straining household budgets. Key expenses include housing rents, school fees, groceries, healthcare and dining out.

Anil Dhanak, managing director of Kanz Jewels, said jewellery is typically bought after essential spending, making customers more budget-aware. Still, he said gold “is not just a purchase but also a symbol of prosperity and a store of value”, and the company expects strong festive sales.

Niraj Bhakare, AVP and chief sales and marketing officer for International Business at Titan Company Limited, said buyers are “increasingly taking the time to compare options, prioritise their needs and choose pieces that offer lasting value and personal significance”. Many still purchase gold for gifting, milestones and personal occasions, he added.

Price relief and global trends

Recent price movements have provided some relief. On Monday morning, 24K gold in Dubai traded at Dh481.5 per gram, with spot gold at $4,007 an ounce. Following a drop below Dh500, some non-resident Indian and expatriate families brought forward their festive purchases.

The retailers’ observations align with global data. The World Gold Council’s Q2 2026 Gold Demand Trends report showed jewellery demand fell 17 per cent year on year as consumers bought less gold and shifted towards lighter products. However, the value of first-half jewellery demand rose 22 per cent to $86 billion.

Meena Jewellers said customers are comparing options, setting budgets and choosing designs that suit both the celebration and their means. Festive promotions add value, but trust, quality and the right design remain important, the retailer said.

Shift towards lightweight, versatile pieces

Shamlal Ahamed, managing director of International Operations at Malabar Gold and Diamonds, said consumers are not significantly cutting purchases but are becoming “more selective and value-conscious”. He noted growing demand for versatile, lightweight lifestyle jewellery that offers both investment value and everyday wearability. Customers are also planning ahead and using gold rate protection schemes to maximise value.

Chirag Vora, managing director of Bafleh Jewellers, said economic pressure and fluctuating prices have led shoppers to plan purchases more carefully. Buyers have moved towards versatile, lightweight pieces, and Bafleh has introduced flexible purchasing options and curated collections.

The Dubai Jewellery Group said inflation inevitably influences discretionary spending, but gold is both a cherished purchase and a savings instrument. “While consumers may reduce the quantity they purchase, the underlying tradition and desire to buy gold and jewellery remain firm,” it said.