On 6 August 2025, the price of 24-karat gold stood at AED 407.00 per gram, with 22K at AED 377.00 per gram. This level marks the upper end of the range recorded over the preceding 10 days. The month of August saw a +2.39% rise in 24K gold overall
As prices climbed toward AED 407–412/gm, demand for gold jewellery declined sharply. In Q1 2025, jewellery demand dropped about 18% year-on-year, from 9.6 tonnes to 7.9 tonnes
Reuters reported a 13% retreat in jewellery demand in the UAE in 2024, exceeding the global decline of 11%. Buyers are increasingly opting for diamonds or lightweight gold pieces, or shifting toward bullion
The World Gold Council identified a shift: retail consumers are moving away from jewellery into bars and coins, treating gold more as an investment than adornment
UAE buyers are caught between rising global-driven prices (which reach roughly AED 407/gm, i.e., about USD 3,500/oz) and limited incentive to buy at premium levels.
This dynamic has created polarized behavior:
Retail jewellery buyers are holding off, switching to smaller, lower‑karat pieces, or avoiding purchases entirely.
In contrast, investors—both retail and institutional—are increasing bullion purchases to hedge against inflation and currency pressures.
