Gold Soars 50% in a Year

Gold Soars 50% in a Year; Diwali Buyers in Dubai Get Smart
Comment by Farhan Badami, Business Development Manager, eToro

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 is not just shopping, it is 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 are
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 is 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.