Gold prices in Dubai have rebounded significantly, rising by up to Dh23.50 per gram after two weeks of declines, driven by strong demand linked to Diwali celebrations. As of last week, the price of 24-carat gold reached Dh490.50 per gram, marking a notable increase from the previous week, according to market indicators from Dubai and Sharjah.
Over the past fortnight, gold prices had dropped by a total of Dh35 per gram, but the recent surge has been attributed to heightened consumer interest, particularly among Asian nationals celebrating the Festival of Lights. Traders report that demand for gold jewellery and coins remains robust despite the price increases.
Current Gold Prices and Market Trends
The latest figures indicate that 22-carat gold rose by Dh21.75 to Dh454.25 per gram, while 21-carat gold increased by Dh21 to Dh435.50 per gram. Additionally, 18-carat gold saw a rise of Dh17.75, reaching Dh373.25 per gram, and 14-carat gold increased by Dh14 to Dh291.25 per gram. This upward trend in prices reflects a broader market response to seasonal demand.
Impact of Diwali on Gold Demand
Raj Bahi, a gold and jewellery trader, noted that the market is experiencing heightened demand from Asian customers for gold gifts, particularly during Diwali. He stated, “The markets are witnessing a high demand from Asian nationals for gold jewelry and coins as gifts, despite the recent price increases in the yellow metal.”
Similarly, Ashwin Raki, another trader, emphasized that the recent price hikes have not deterred buying activity. He explained that many customers are purchasing gold as gifts for their families during this festive period, viewing it as a traditional practice. Furthermore, some traders are buying gold as a hedge against potential future price increases, believing that current prices remain favorable for purchases.
Market Outlook
John Paul Alukas, CEO of Joy Alukas Jewellers, confirmed that the market is witnessing increased demand for gold gifts across all categories during Diwali. He remarked that this buying activity positively influences overall demand rates in the market. As the festive season continues, traders anticipate sustained interest in gold, which could further impact pricing dynamics in the coming weeks.
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As the festive season progresses, market observers will be closely monitoring how these trends evolve and whether the demand for gold will continue to rise amid fluctuating prices.
