Gold Jewelry Demand Up as Prices Fall

Gold Jewelry Demand in UAE Rises as Prices Ease

After a prolonged period, the demand for gold jewelry is once again on the rise in the United Arab Emirates. Following a peak in October where prices reached a five-year high, market corrections have encouraged consumers to return to buying—especially in Dubai, a long-standing hub for international gold trade. According to the latest data from the World Gold Council, demand for gold fell to a five-year low in Q3 2025, but following October's price surge, many have started buying again—albeit with a different strategy.

Market Rebounding After Price Surge

In October 2025, the price of 24-carat gold hit 525 dirhams per gram in Dubai, deterring many buyers and triggering a significant downturn in the gold jewelry market. The World Gold Council reported that during the July-September period, demand for gold jewelry in the UAE dropped to 6.3 tons, marking a 10% decline compared to the same period the previous year, and an 18% drop from the second quarter.

This quarterly figure of 6.3 tons is the lowest in the last five years, previously recorded in the third quarter of the pandemic year, 2020, when sales plummeted to 3.8 tons.

What Changed After October?

After the October peak, the price of 24K gold significantly dropped, now hovering around 482 dirhams per gram, while 22K, 21K, and 18K gold are trading at 446.25, 428, and 367 dirhams per gram, respectively. Over the weekend, the spot gold rate closed at $4,001.21 per ounce, indicating a return to more manageable price levels.

Simultaneously, buyers have returned to the stores, though not with the same mindset. Many have shifted strategies, favoring smaller, lighter, more affordable pieces over the larger, heavier, pricier ones. This trend is particularly evident among younger generations who prioritize style and cost-effectiveness.

Investment or Fashion? Rise of Conscious Buying

This shift in demand has also highlighted a notable trend: more people are buying gold jewelry as a conscious investment. Customers are seeking pieces that serve as both a store of value and fashionable accessories. Classic, timeless forms—such as thin necklaces, bracelets, and simple earrings—are regaining popularity.

More people are tracking gold price trends daily, only entering the market when they perceive prices to be favorable. This conscious approach is especially noticeable in cities like Dubai, where numerous gold traders vie for customer favor, and price sensitivity can provide a competitive edge for jewelry stores.

Tourism and Festive Season—A Boost to Sales

As winter approaches, shopping enthusiasm is rising in conjunction with tourism growth. This time of year sees numerous holidays, family events, and festivals in the UAE, traditionally driving up jewelry purchases. Many visitors seek “golden souvenirs” from Dubai, especially around the iconic Gold Souk area.

These factors—price drops, increased tourism, and a concentration of cultural events—are collectively boosting demand, especially during the November-December period.

Gold Bars and Coins: A More Reserved but Stable Demand

The demand for gold bars and coins also decreased in the third quarter, although to a lesser extent. The World Gold Council indicates that sales of investment-oriented bars and coins declined by 6% compared to last year, totaling 3.4 tons. Quarterly, there was an 18% decline here as well.

However, this segment has been less sensitive to price fluctuations as buyers—particularly long-term investors—tend to wait it out, with many investing now in anticipation of the next price rise since prices have temporarily dropped.

Summary: Conscious Buyers, Adaptive Market

The revival of the gold jewelry market is not just a result of price movements. Consumer behavior has also evolved—becoming more conscious, balancing fashion and financial foresight. Jewelers are adapting to this, showcasing new collections that are both stylish and more affordable while being investment-worthy.

Dubai’s gold market remains a key player in global jewelry trade, but buyers are increasingly analyzing gold with a critical eye—whether for gifting, celebrations, or long-term savings. The upcoming festive season and year-end tourism traffic are expected to further bolster this trend.

(Source: Based on data from the World Gold Council.)