Gold prices in the UAE surged to an all-time high on Friday, with the yellow metal briefly touching Dh429 per gram before easing later in the day, according to data released by the Dubai Jewellery Group.
The 24-karat variety peaked at Dh429 per gram before settling at Dh427.5, while 22K climbed to Dh397.0 per gram before slipping back to Dh395.75. On the global market, spot gold was trading steadily at $3,551.22 per ounce by Friday afternoon, hovering close to record levels.
The surge in prices has reshaped demand patterns in the UAE, a market known for its deep affinity for gold. Industry players say consumers are increasingly turning toward lighter, more affordable jewellery pieces suited to everyday wear, while others are postponing purchases in the hope of more stable prices.
“Yes, the market is witnessing a distinct shift toward lightweight and affordable jewellery suited for everyday wear, a trend shaped by current gold prices and evolving lifestyle preferences,” a spokesperson for Joyalukkas, one of the country’s largest jewellery retailers, told reporters.
The spokesperson added that younger buyers are showing a strong preference for modern, contemporary designs, while traditional collections remain popular with long-time customers. “There is also a consistently strong response to exclusive offers and promotions, which further enrich the shopping experience and sustain consumer interest,” the representative noted.
For small investors, however, the price rally has created a dilemma. Many are weighing whether to cash in on recent gains, hold their purchases, or add to their holdings in the expectation that prices may rise further.
Market analysts say gold’s resilience reflects broader global economic concerns. “Spot gold is holding steady just below its record highs, floating near $3,550 per ounce,” said Samer Hasn, senior market analyst at trading platform xs.com. “After a sharp rally in recent days, the metal is now consolidating as investors weigh economic risks and political uncertainties that continue to shape the macro backdrop.”
Hasn noted that the recent strength in gold has been driven less by expectations of imminent interest rate cuts and more by investor unease over economic stability and persistent bond market selloffs. “Long-term bond selloffs support this narrative, pushing investors toward safe-haven assets such as gold,” he added.
With gold prices sitting near historic highs, both jewellery shoppers and investors in the UAE are approaching the market cautiously. Retailers, meanwhile, continue to innovate with lighter collections and promotional offers to keep consumer interest alive in what has long been one of the country’s most resilient retail sectors.
