Reduced interest in gold jewellery among UAE consumers as 22K gold prices exceed AED 370
High Gold Prices Dampen Casual Jewelry Buying in UAE
Gold prices in the UAE have reached unprecedented levels this year, with 24K gold hitting Dh420 per gram. This surge has led to increased price sensitivity among shoppers, resulting in a shift in consumer behavior.
Most gold purchases in the UAE are currently being made by investors expecting further price hikes or by residents shopping for essential occasions such as weddings. However, casual shopping for gold jewellery is minimal, according to a gold jeweller.
The latest World Gold Council report for Q2 2025 indicates a noticeable shift in consumer behavior in the UAE. Jewellery purchases are becoming less common due to a shift in consumer behavior, with more residents opting to invest in gold coins and bars.
Aditya Singh, head of International Jewellery Business at Titan Company, Tanishq, has observed a rise in price sensitivity among consumers in the UAE jewellery market. He notes a shift in how and why people buy, with purchases becoming more value-driven.
Customers are seeking promotions, reducing making charges, or shifting to diamond or semi-precious jewellery where discounts are deeper. There is a growing segment of consumers who continue to view gold as a long-term store of value.
The high gold prices have made casual and discretionary purchases less affordable, leading consumers to focus more on value-driven buying decisions or investing in gold coins and bars instead. This reluctance is despite retailers offering discounts or cuts on making charges, which have not been enough to sustain sales volumes.
The UAE market is especially impacted because of its reliance on tourists and resident shoppers, who have become more discerning as prices cross psychological thresholds like Dh370 per gram. The trend is expected to continue as gold prices remain high, affecting the jewellery industry in the country.
References:
- Khaleej Times
- Gulf News
- Zawya
- Arabian Business
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