As the Onam festival approaches, a cherished time for families in the UAE to purchase gold, the soaring prices have become a cause for concern. On September 1, 2025, the price of 22K gold in Dubai reached a record high of Dh388 per gram, surpassing the previous peak of Dh383.75 set in June . This marks a significant increase from January 1, when the price was Dh294.5 per gram.
The upsurge in gold prices is attributed to a combination of global economic factors. Internationally, gold prices have surpassed $3,500 per ounce, driven by inflation fears, weakening global currencies, and geopolitical tensions . In the UAE, these global trends have translated into higher local prices, impacting both investors and consumers.
For UAE residents planning to buy gold for Onam celebrations, the current prices may pose a challenge for a while but cannot actually hinder or stop sales also at the same time if purchase is done with mindset of buying an asset. The significant increase in gold prices also means that purchasing the same amount of gold now requires a considerably higher investment compared to earlier in the year. This situation may lead to reconsiderations and adjustments in purchasing plans for the festive season.
While the cultural significance of gold during Onam remains strong, the current high prices may prompt buyers to reassess their purchasing decisions and redo their budgeting.
