Gold jewelry sales in the UAE have surged as prices fell after reaching their peak in October, jewellers in Dubai report.
The demand for precious metal jewelry dropped to a five-year low in the third quarter of 2025 due to high prices, as per World Gold Council data.
“We’ve observed a modest rise in jewelry demand since October’s peak in gold prices. This price drop presents a chance for bargain hunters. Customers are making strategic purchases, leaning towards lighter, more affordable gold pieces,” said Chirag Vora, managing director of Bafleh Jewellers.
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“With prices coming down from their peak, shoppers are more willing to buy again but are focusing on affordability. Many track gold rates closely before purchasing. There’s also a growing trend of investment-focused buying, with customers opting for timeless, versatile pieces that are both valuable and stylish,” Vora added.
Anil Dhanak, managing director of Kanz Jewels, noted a recent uptick in sales. “The reduction in gold prices has brought buyers back to the market, and the start of the winter season — known for increased tourism and festive demand — has further boosted jewelry sales,” he said.
Gold prices peaked in October with 24K reaching Dh525 per gram in Dubai. Over the weekend, 24K, 22K, 21K, and 18K were priced at Dh482, Dh446.25, Dh428, and Dh367 per gram, respectively.
Spot gold closed at $4,001.21 per ounce over the weekend.
Gold prices plummet
World Gold Council data showed that UAE’s yellow metal jewelry demand fell to 6.3 tonnes in the third quarter of 2025, a five-year low as prices hit record highs.
During July-September 2025, gold jewelry demand dropped 10% year-on-year to 6.3 tonnes from 7.1 tonnes in the same period last year.
Quarter-on-quarter demand decreased 18%. This was the lowest quarterly gold jewelry sales since the third quarter of 2020, when sales were 3.8 tonnes.
Gold coins and bars demand also declined in the third quarter in the UAE, but at a slower rate than jewelry, as people purchased coins and bars for investment, expecting prices to rise further.
The World Gold Council data showed bar and coin demand fell 6% year-on-year to 3.4 tonnes in the third quarter this year. Meanwhile, quarter-on-quarter sales of coins and bars dropped 18%.
Overall, gold demand in the UAE fell 9% year-on-year to 9.7 tonnes during July-September 2025, the lowest since the second quarter of 2021, when demand was 8.8 tonnes.
