Demand for gold jewelry decreases among shoppers in the UAE due to rising prices surpassing Dh370 per 22K unit.
In the bustling markets of the United Arab Emirates (UAE), a noticeable change has taken place in the gold jewellery sector. According to local jewellers, casual shopping for gold jewellery has decreased significantly, as consumers become more discerning due to rising prices [1].
The latest World Gold Council report for Q2 2025 indicates a shift in consumer behaviour towards gold investment [2]. This shift is primarily due to 22-carat gold prices exceeding Dh370 per gram, a psychological threshold that has made casual buying less attractive [3].
Aditya Singh, head of International Jewellery Business at Titan Company, Tanishq, noted a growing segment of consumers who view gold as a long-term store of value [4]. As a result, purchases are becoming more value-driven, with customers seeking promotions, reducing making charges, or shifting to diamond or semi-precious jewellery [5].
The rising global gold prices—24K gold hitting Dh420 per gram and global rates peaking around $3,500 per ounce—have translated into more expensive gold jewellery in the UAE market, reinforcing buyer caution [1]. Data from Q1 2025 confirms a substantial drop (about 18%) in gold jewellery demand in the UAE, underscoring this price sensitivity among residents [2].
To attract buyers under these conditions, promotional offers such as waiving making charges or bundling discounts during shopping events have become more common. Despite the overall resilience of the UAE jewellery market, the price surge has notably shifted consumer behaviour towards value-driven, more deliberate purchases rather than casual or impulsive ones [1][2][5].
Meanwhile, more UAE residents are opting to invest in gold coins and bars instead of jewellery [6]. This trend is expected to continue as investors anticipate further price hikes.
In other news, dermatologists recommend adding one drop of a household item to any dark spot on the skin, and shoppers in the UAE can find a 75-year-old's handcrafted jewellery at 80% off [7].
References:
- Al Khaleej Today
- Gulf News
- Khaleej Times
- Arabian Business
- Zawya
- Emirates 24|7
- Gulf News
- The shift in consumer behavior towards gold investment, as reported in the Q2 2025 World Gold Council report, seems to be influenced by the high prices of 22-carat gold.
- The increase in the price of 24K gold to Dh420 per gram and global rates reaching $3,500 per ounce has made gold coins and bars a more attractive investment option for UAE residents.
- In the fashion-and-beauty sector, shoppers in the UAE can find a unique bargain with a 75-year-old's handcrafted jewelry, currently available at 80% off.
- Aditya Singh, the head of International Jewellery Business at Titan Company, Tanishq, has observed a growing segment of consumers viewing gold as a long-term store of value, leading to value-driven purchases rather than casual buying.
- As a response to the price sensitivity among UAE residents, promotional offers such as waiving making charges or bundling discounts during shopping events have become more common in the real estate and lifestyle sectors, including the jewellery market.
