Gold jewellers in the UAE are experiencing strong Diwali sales, with customers continuing to buy jewellery despite high prices.

Known as the festival of light, Diwali is not just a time for gifting jewellery; it is a celebration of prosperity, family, and tradition. Many jewellers in the UAE curate ornament designs specifically targeting the festival as sales pick up during this week. They also combine gold offers and discounts with exclusive collections to make the most of the season.

On Sunday, gold prices were trading close to an all-time high. According to Dubai Jewellery Group data, 24K, 22K, 21K, and 18K were trading at Dh512.25, Dh474.25, Dh455, and Dh390 per gram, respectively. Spot gold closed the week at $4,249.94 per ounce, down 0.94 per cent. It hit a record high of $4,378.98 per ounce last week.

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“Jewellery sales are seeing good growth despite the high gold prices, primarily because of the trust that the customers have in the brand, in addition to the beautiful new festive collections. Overall interest in festive purchases remains strong, supported by well-timed offers and product innovations,” said Aditya Kejriwal, head of marketing, International Business Titan Company Limited.

Besides, he said, consumer preferences are always evolving... The festive season is a time of celebration, gifting, and tradition. While we have always offered the best exchange value to customers, we have made it even better this festive season,” said Kejriwal.

According to Anuraag Sinha, managing director of Liali Jewellery, jewellery demand in the UAE fell 18 per cent year-on-year in the first quarter of 2025.

In the April-June period, jewellery sales dropped to about 7.7 tonnes, which was 16-17 per cent lower compared to the same period a year earlier.

A spokesperson of the Dubai-based jeweller Joyalukkas said, despite record-high gold prices, they have not seen a decline in interest, only a shift in buying patterns.

“Some jewellery shoppers are approaching their purchases more thoughtfully, choosing lighter and smaller designs or investing in symbolic pieces such as gold coins or keepsake jewellery. While total volumes may reflect more measured spending than last year, the sentiment around Diwali remains strong and the demand for meaningful, high-quality jewellery continues unabated. Essentially, the love for gold and its cultural significance outweighs short-term market fluctuations,” said the spokesperson.

Joyalukkas added that the focus remains on ensuring that even in a high-price environment, the joy of gifting and owning gold is preserved.

“We are also strictly adhering to sustainable, responsible sourcing and ethical practices across our business operations. This is to enhance trust with customers and for the better of the broader community,” the jeweller said.

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