High gold prices are prompting jewellers in Dubai to introduce lighter designs and rethink their festive collections ahead of Dhanteras and Diwali. New manufacturing techniques are helping reduce the weight of jewellery without compromising on craftsmanship, while colourful designs and lower-weight diamond-studded pieces are gaining attention as jewellers look to make their collections more affordable.
Chandra Prakash Siroya of Siroya Jewellers said some jewellery pieces that previously weighed considerably more can now be made in just 40-50 grams. He attributed the shift to advances in manufacturing technology, including 3D printing and electroforming, which allow jewellers to produce lighter pieces while improving their strength.
“Lightweight jewellery is the flavour of the season,” Siroya said in an interview with CNBC-TV18.
Dinesh Kambrath of Vinsmera Jewels said the impact of higher gold prices was evident in changing jewellery weights. A piece that now weighs 80 grams would have weighed around 120 grams five years ago, he said, adding that customers are finding it harder to afford heavier jewellery at current gold prices.
Jewellers are also experimenting with designs, colours and materials. Siroya said there was good demand for Meenakari, coloured stones, Kundan and Polki jewellery, alongside bridal pieces and lightweight diamond-studded designs.
Kambrath said Vinsmera Jewels had introduced its Varnika collection, featuring colourful designs with precious stones such as rubies. The collection has been developed around traditional preferences for colourful jewellery during Diwali.
Soni Pahuja of AU Finja said the company had introduced its Athena Pro collection in 18-karat gold, with pieces weighing between 11 and 15 grams. The collection is also available in 22-karat gold, with weights ranging from 15 to 20 grams. The company has also experimented with titanium through its Ausum collection.
Pahuja said customers consider quality and design when buying jewellery, rather than focusing only on weight. However, lighter options help cater to those with more limited budgets.
Dubai jewellers expect festive demand
Jewellers in Dubai are expecting healthy business during the Dhanteras and Diwali period, with the long weekend and promotional offers likely to attract shoppers.
Kambrath said Diwali was one of the biggest sales periods for the jewellery business in Dubai. Vinsmera Jewels is offering discounts of up to 40% on making charges and a free gold coin. The company also accepts old gold purchased from other stores for exchange against new jewellery.
Siroya said customers had booked jewellery when gold prices fell to around $3,800, ahead of the subsequent recovery. Several jewellers, including his company, are offering price protection, allowing customers to choose between the gold price prevailing on the booking date and the price on the delivery date.
He said festive demand typically spans several categories, from bridal jewellery and large Kundan and Polki pieces to lightweight diamond-studded designs.
Commodity experts divided on gold price outlook
While jewellers are preparing for festive demand, commodity experts have differing views on the outlook for gold prices.
Dharmesh Bhatia, commodity advisor, expects further correction in gold and silver prices, citing elevated interest rates and borrowing costs. He expects domestic gold prices to move towards ₹1.38 lakh per 10 grams, while silver could decline to ₹1.5 lakh-₹1.6 lakh.
Bhatia described the recent recovery in gold prices as a temporary pullback and expects the market to remain in consolidation mode in the near term. He believes gold could regain momentum in 2027 or 2028 if interest rates and bond yields begin to decline.
While he prefers gold over silver for the longer term, Bhatia sees opportunities in copper and other base metals because of industrial demand. He identified copper as a potential investment opportunity over the next three to six months.
“I would be bullish on copper and base metals because of industrial demand,” he said.
Mohamad Ali of MAH Gold, however, expects international gold prices to trade in a range of $4,200-$4,600 before the end of 2026. He said demand had remained strong even when prices climbed to $5,600 and subsequently fell to around $3,850.
Ali believes gold will continue to attract investors as a safe-haven asset, supported by geopolitical uncertainty, central bank purchases and global economic developments.
India-UAE trade offers further opportunities
Ali said India remained a key market for MAH Gold and Jewellery, with the company supplying substantial quantities of gold and silver to the country. He expects the new quota that the Indian government is set to implement through the exchange to create further opportunities in 2027.
He also highlighted the India-UAE Comprehensive Economic Partnership Agreement (CEPA), saying it had improved trade between the two countries and opened up opportunities in precious metals.
Siroya said Dubai offered several advantages to jewellery buyers, including a wide variety of designs and tax benefits. He pointed to the 5% tax refund available to tourists and trade agreements that provide zero customs duty on certain categories of jewellery, including Indian-made jewellery.