As gold prices surged to record highs in the UAE this week, consumer behavior across the Emirates has shifted, with some residents opting to sell old jewellery to take advantage of the price hike, while others are delaying new purchases amid market volatility.
Gold rates in Dubai peaked at Dh420 per gram for 24K on Tuesday, before dropping sharply to Dh399.5 on Wednesday morning. The sudden drop followed global trends, with international gold prices falling from nearly $3,500 per ounce to around $3,322.44 — a 2.5% dip in a single day.
The sharp fluctuations have caused a stir among buyers and sellers. Jewellers reported a slight dip in jewellery sales, particularly among price-sensitive customers, but emphasized that overall demand has remained steady due to gold’s status as a trusted safe-haven asset.
“There has been a reduction in volume, but not a drastic one,” said Joy Alukkas, chairman of Joyalukkas Group. “People are now gravitating toward lightweight jewellery and gold coins — smaller pieces that still hold investment value in these uncertain times.”
Alukkas added that some customers are also capitalizing on the high prices by selling or exchanging old jewellery. “Many are trading in older items for new designs or simply liquidating at the current rates before prices fluctuate again,” he said.
Gold variants across the board saw significant price corrections on Wednesday. While 24K dropped to Dh399.5 per gram, 22K slipped to Dh370.0, 21K to Dh354.75, and 18K to Dh304.0.
Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, echoed similar sentiments, noting that any slowdown in purchases is likely to be temporary.
“Price-conscious buyers may hesitate briefly, but history shows they adapt quickly to new price points,” he said. “We haven’t seen a major rise in gold exchange, which tells us that customers continue to view gold as a long-term, stable asset.”
Despite the record prices, Alukkas confirmed that sales remain “stable” across their showrooms, with shoppers continuing to buy for weddings, special occasions, and long-term wealth preservation.
“Attractive promotions and fresh designs are helping maintain interest,” he said. “Gold is still very much a part of the UAE’s cultural and financial landscape.”
With global markets in flux, jewellers remain optimistic that gold will continue to be a strong performer, both as an investment and a cultural mainstay.
