Gold buyers in the UAE who made purchases during the Diwali festival are facing significant short-term losses as gold prices plummeted shortly after the celebrations. According to analysts and jewellers, the sharp decline in gold prices has resulted in losses amounting to thousands of dirhams for many shoppers. Despite this immediate setback, many residents view their gold purchases as long-term investments, valuing the precious metal for its stability and enduring worth. Vijay Valecha, Chief Investment Officer at Century Financial, noted that 24-karat gold in Dubai reached a record high of Dh525.25 per gram on October 21, driven by festive demand and global safe-haven trends. However, prices dropped sharply to Dh485 per gram by the evening, marking a significant decline of nearly Dh30 per gram. This trend continued, with prices falling further to Dh484 per gram on October 22, exacerbating losses for buyers. Vinita Hirani, a long-time UAE resident, emphasized the long-term value of gold, stating that it remains a more stable asset compared to volatile options like Bitcoin. Varun Bafna, co-founder of Amari Capital, attributed the price drop to global profit-booking after weeks of record highs. Anuraag Sinha, Managing Director at Liali Jewellery, highlighted the financial impact, noting that a 10-gram purchase at peak prices during Diwali would now cost Dh300 less, excluding additional charges like making fees and design premiums.
Diwali gold buying ends in losses: UAE shoppers lose thousands of dirhams as prices fall
