Best time to buy gold in the UAE after Diwali price drop: What buyers need to know

Dubai: Gold prices in the UAE have experienced a significant correction following recent historic highs, providing welcome relief to buyers after months of record-breaking surges post Diwali 2025.

The tumbled rates in the wake of Diwali is creating a buzz among buyers looking to capitalise on lower rates. Here’s a closer look at the market movements and what they mean for investors and shoppers alike.

Post-festival price drop

On Wednesday, October 22, 2025, 24-karat gold dipped to Dh484 per gram, while 22-karat gold fell to Dh448, marking their lowest levels in nearly two months. Though prices recovered slightly by evening, climbing back to Dh487 and Dh451 respectively, the decline follows a dramatic Dh30 plunge just days before, when 24-karat gold touched an all-time peak of Dh525.25 per gram.

Global market influence

This steep sell-off mirrors global trends as investors shed safe-haven assets amid improving US-China trade relations and a strengthening US dollar. Spot gold prices worldwide declined 1% to $4,055 an ounce, extending the previous day’s 6% rout that was the most significant intraday fall since 2013. Silver also tumbled nearly 9% in tandem.Market analysts interpret the rapid sell-off as a natural correction rather than a market collapse.

They note that the prior fear-driven rally has dissipated amid easing geopolitical tensions and stronger US economic data, prompting asset rotation from bullion to equities.

Shoppers seize the opportunity

The gold market trends as of October 21, 2025, detailing price movements and buyer sentiment post-Diwali celebrations, have found that locally, the price drop has sparked renewed interest among price-sensitive buyers. Jewellery retailers in Dubai and Sharjah report a surge in foot traffic, with customers eager to capitalise on gold’s affordability after weeks of elevated prices.While volatility may persist, experts maintain that gold’s long-term fundamentals remain robust. Inflationary pressures, central bank reserve accumulations and expectations of US rate cuts in 2026 could bolster bullion demand in the medium term.For now, UAE buyers are closely monitoring the market, as the recent correction presents a potential short-lived window to acquire gold before prices stabilise or rise again.