(MENAFN- Golin Mena) Abu Dhabi, United Arab Emirates - October 16, 2025

Gold surpassed $4,000 per ounce for the first time in history earlier this month, with prices rising over 50% compared to the same time last year. For the millions of Indian residents in the UAE preparing for Diwali celebrations, this creates an interesting tension between cultural devotion and financial pragmatism. Buying gold during Diwali isn't just shopping, it's considered auspicious and a tradition that invites prosperity into the home. But at $4,164 an ounce, is tradition proving more expensive than ever before?

According to Farhan Badami at eToro, 2025 has been a wild ride for markets. Geopolitical tensions, trade wars, and currency volatility have central banks globally hoarding gold at record pace. They're buying for the same reason many families buy during Diwali - gold is the ultimate safe haven when nothing else feels stable and tends to appreciate in the long term. But here's what makes this Diwali historic: this is the first time the festival of lights has coincided with gold at such a high price.

Talk to jewellers right now, and they'll tell you that business is brisk, but the psychology has shifted. People are being smarter about it. Instead of buying heavy ornate pieces, many are opting for smaller gold coins, lighter jewellery, or even spreading their purchases across the year rather than splurging all at once during the festival. Some Indian residents in the UAE have been using rupee-linked bank accounts to ease the cost burden, taking advantage of currency arbitrage opportunities.

In retrospect, Diwali couldn’t have come at a better time for jewellers. Although high gold prices have dampened volume demand, festive shopping has provided a welcome boost in sales. Those who stocked up when prices were lower are also reaping healthy profit margins.

During Diwali season, the Gold Souk becomes a real-time barometer for Indian gold demand worldwide. The VAT advantages, purity standards, and sheer variety make Dubai a preferred destination over buying in India itself. The mega Diwali 2025 celebrations from October 17 to 26 feature shopping vouchers worth Dh150,000 and creative retailer promotions designed to maintain momentum even at these prices. What happens in Dubai during Diwali often signals broader trends in the global gold market - and right now, the signal is: demand remains resilient, but buyers are being strategic.

What we're witnessing this Diwali is a topical case study in how cultural traditions adapt to economic shocks. Record gold prices haven't killed Diwali gold buying. They've just made buyers smarter and more strategic. The auspiciousness of the occasion doesn't require maxing out your budget, because it's the intention that matters.

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