UAE Gold Retailers Report Steady Demand Despite Three-Month Price Peak

Gold hit Dh559.50 per gram for 24-karat in the UAE on Monday, its highest point in three months. By Wednesday, prices had stabilized after four consecutive days of gains. What has not stabilized, according to retailers across the emirate, is consumer demand, which has held firm even as the market climbed.

Jewelers operating across the region say customers have responded not by walking away but by recalibrating what they buy, when they buy it, and how much they spend. The shift is less about hesitation and more about discipline.

Tawhid Abdulla, chairman of Dubai Jewellery Group, put it plainly. “Consumers remain engaged with the market, although they are becoming more mindful of the timing and value of their purchases,” he said. “Most consumers don’t necessarily postpone a purchase altogether but instead adjust the quantity, product type, or budget to suit their needs.”

Industry operators describe this as a transition from volume-driven purchasing to value-conscious buying. Anil Dhanak, managing director of Kanz Jewels, noted that overall demand has stayed strong despite tighter budget discipline among shoppers. The underlying drivers include global economic uncertainty, anticipated interest rate reductions, a weakening US dollar, and persistent investor appetite for gold as a protective asset. Central bank purchasing has also bolstered market sentiment.

Tracking price movements has become standard practice. Chirag Vora, managing director of Bafleh Jewellers, reported that customers monitor rates daily and act the moment prices dip. “Every small dip triggers immediate buying, both in-store and online, as customers rush to lock the rate before it goes up again,” he said. High prices have not deterred buyers. They have sharpened them.

The composition of purchases has shifted noticeably. Shoppers are gravitating toward lightweight daily-wear jewelry in the 10-to-12-gram range, down from a previous standard of around 20 grams. Investment-focused buyers have shown heightened interest in 24-karat coins and bars, drawn by lower making charges and the flexibility to buy in smaller denominations.

John Paul Alukkas, chief executive of Joyalukkas, described the pattern as evidence of more disciplined consumer behavior. “Rather than rushing in during volatile spikes, they are waiting for those brief price corrections to enter the market,” he said. The company’s advance-booking offers allow customers to lock in current rates, giving buyers another tool for managing price uncertainty.

Malabar Gold and Diamonds, which operates across 14 countries, has observed similar trends. Customers are spending more time assessing designs and budgets, though conversion rates have remained steady. The company offers a scheme permitting customers to pay 50 percent or 100 percent upfront to secure prevailing rates for three or six months, with the option to purchase at lower rates if prices fall during that period.

Shamlal Ahamed, managing director of Malabar Gold and Diamonds for international operations, said the metal’s dual role sustains purchasing intent through volatile stretches. “Gold continues to be viewed not only as an ornament but also as a long-term store of value, which sustains buying intent even amid periods of price volatility,” he said.

Meanwhile, jewelry purchases remain concentrated around weddings and festivals, with some families spreading acquisitions across multiple transactions rather than completing them in a single visit. The broader demand base in the Emirates is supported by residents buying gold while traveling and by cultural gifting traditions tied to celebrations.

Dhanak noted that while higher prices have reduced the weight of gold purchased per transaction, overall consumer interest has not declined. “Customers tend to adjust the weight and design rather than completely postpone their purchases, especially during wedding and festive periods,” he said.

The approaching festive season in India is expected to generate significant additional demand, a test of whether the disciplined buying patterns now visible in the UAE will hold when seasonal pressure and price volatility arrive together.