The glitter of gold seems to be losing its usual shine in the UAE—at least for now. Latest market data reveals a 16% decline in gold sales across the Emirates, indicating that many buyers are choosing to stay on the sidelines, possibly waiting for more stable prices or better buying conditions.
According to jewellery retailers and market observers, consumer sentiment has noticeably shifted in recent months. A combination of elevated international gold prices, geopolitical tensions, and the dirham’s linkage to the strong US dollar has made gold purchases more expensive for residents and tourists alike.
Traditionally, the UAE has been a hotspot for gold buyers, thanks to its competitive pricing, low taxes, and wide variety of designs. However, recent weeks have shown a slowdown in foot traffic and reduced purchase volumes at major gold souks and retail outlets in Dubai, Sharjah, and Abu Dhabi.
Retailers point out that while interest in gold remains strong, actual purchases have dipped. Many customers are walking in to check prices or window shop, but fewer are finalising purchases. “There is definitely a cautious approach now,” said a leading gold merchant in Dubai’s Deira Gold Souk. “People are waiting for prices to cool down before they invest.”
In addition to individual buyers, even bulk and investment-oriented gold transactions have shown signs of slowing. Traders believe that the recent surge in prices driven by global economic uncertainty and inflation concerns has made buyers hesitant to lock in at peak levels.
Gold prices recently hovered around AED 270 per gram for 24K gold, a significant jump compared to the previous quarter. While prices have fluctuated slightly, the general trend remains high, discouraging budget-conscious customers.
Jewellers have started offering promotional schemes, discounts on making charges, and zero-interest installment plans to attract more footfall. But so far, these offers haven’t translated into a major rebound in sales.
Analysts say the dip might be temporary. With major shopping seasons like Diwali and the end-of-year holidays approaching, there could be a short-term boost in demand, especially from tourists and expatriate communities with cultural traditions tied to gold.
For now, the mood in the market remains cautious. While gold still holds its appeal as a safe-haven asset and a symbol of prosperity, UAE buyers appear to be weighing their options more carefully—hoping for a price correction before jumping back in.
