As Diwali approaches, gold shoppers in the UAE are catching a lucky break, with prices retreating for the fifth consecutive day to reach their lowest point in over two months. On Friday, the 24K gold rate dropped by Dh3 per gram, opening at Dh482.75, while 22K, 21K, and 18K variants saw similar declines. This downward trend is providing a much-needed boost for residents looking to purchase traditional jewelry and coins, as the lower costs make it easier for families to stick to their budgets while still participating in the festive tradition.

Market analysts suggest that this price drop is largely driven by surging oil prices, which have reignited fears of inflation and potential interest rate hikes from the US Federal Reserve. Experts like Ranim Turfa of Tickmill note that while the Fed may hold steady in the short term, lingering concerns over monetary policy are keeping gold under pressure. Furthermore, some investors are offloading their gold holdings to cover losses in other areas of the market, dampening the metal's usual appeal as a safe-haven asset. Despite these complex global economic factors, the immediate effect for local consumers is a more affordable festive season.