Gold prices in Dubai continue to fall after the Diwali peak, giving long-awaited relief to buyers following months of record-breaking highs.
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Gold prices in Dubai continue to fall after the Diwali peak, giving long-awaited relief to buyers following months of record-breaking highs.
Gold prices in Dubai continue to fall after the Diwali peak, giving long-awaited relief to buyers following months of record-breaking highs. The price of 24-karat gold dropped to around Dh490.25 per gram, while 22-karat fell to Dh454, down sharply from the recent highs that touched Dh525.25 per gram just days earlier.
According to the latest rates, the 24K gold price as of October 23, 2025, stands at Dh494 per gram, while 22K trades around Dh457.25 — slightly recovering from this week’s steep declines.
The correction mirrors a global pullback, as gold futures slipped below $4,100 per ounce, pressured by a rising US dollar, equity market resurgence, and easing geopolitical tensions. Post-festival demand from Asian markets, including India and China, has softened sharply, causing a temporary slowdown in physical buying.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, said the market’s loss of momentum was inevitable after failing to break resistances near $4,380/oz. “Gold and silver are undergoing a long-overdue correction triggered by post-Diwali weakness and profit-taking. The structural drivers, however, remain intact—meaning the long-term bullish case for gold still stands,” he explained.
The pull-back in Dubai’s local market stems from:
Cooling demand post-Diwali, traditionally one of Asia’s busiest buying seasons.
US dollar strength, which makes gold relatively more expensive for holders of other currencies.
Large ETF outflows, signalling near-term investor caution.
Profit-taking after a 31% gold rally and a 45% surge in silver over nine weeks.
and global uncertainty still supportive, gold may remain strong long-term. For UAE consumers and investors, the current dip could be an opportunity to accumulate — but caution is advised as short-term volatility may persist.
Hansen adds, “Gold is still under-owned globally and remains an essential hedge. The current dip is likely technical, not fundamental.”
As the festival-driven buying wave cools off, market watchers recommend careful entry during present price levels before the next potential rally heading into 2026.
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