Soaring gold prices are prompting UAE shoppers to rethink their jewellery purchases, with many now holding back as 22-carat gold consistently trades above the Dh370-per-gram threshold.
Retailers across the country report that while the market remains resilient, rising prices have clearly influenced consumer behaviour, with more buyers now showing caution and sensitivity to pricing.
“The UAE jewellery market remains incredibly resilient, even in the face of significant price movements,” said Aditya Singh, Head of International Jewellery Business at Titan Company, Tanishq. “However, rising gold prices have made consumers more discerning. We’ve observed a clear increase in price sensitivity, especially when rates hover around or exceed psychological thresholds like Dh370 per gram for 22K.”
Currently, only essential purchases—such as for weddings or investments—are driving demand. Casual or impulsive jewellery shopping, once a common trend in the UAE, has seen a notable decline.
This comes amid record-breaking highs in gold markets globally and locally. On Sunday, spot gold closed at $3,363 per ounce, a 1.97% increase. In Dubai, 24K gold was trading at Dh405.25 per gram, while 22K stood at Dh375.25. The prices for 21K and 18K were Dh360.00 and Dh308.50 per gram, respectively.
Experts attribute the gold rally to geopolitical tensions, robust central bank buying, and tariff wars that have rattled global markets. The World Gold Council recently noted that Dh400 per gram has effectively become the new benchmark for 24K gold in the UAE, a level once considered prohibitively high.
Over the past year, gold prices in the UAE have surged by Dh100 per gram, pushing more price-conscious buyers to seek alternative value propositions.
“Purchases today are more value-driven, with customers actively seeking promotions, negotiating on making charges, or even opting for diamond or semi-precious jewellery, where discounts tend to be deeper,” Singh explained.
Despite the drop in casual jewellery purchases, gold continues to attract long-term investors. Singh noted that a growing number of residents and tourists are still buying gold, viewing it as a secure store of value—especially when designs or occasions justify the expense.
The latest World Gold Council report for Q2 2025 highlights this shift, showing a growing preference among UAE residents for investing in gold bars and coins, while jewellery purchases take a backseat.
As prices remain elevated and economic uncertainty lingers, jewellers say this cautious consumer trend is likely to persist in the near term.
