Gold Jewellery Sales in UAE Drop 18% Amid Soaring Prices

Sky-high gold prices are taking a toll on UAE shoppers. Gold jewellery demand in the Emirates dropped 18% year-on-year in the first quarter of 2025, according to the World Gold Council, falling to 7.9 tonnes from 9.6 tonnes in Q1 2024.

The luxury metal’s price rally — which peaked at $3,500 per ounce globally and Dh420 per gram in Dubai last month — has cooled off consumer enthusiasm. Many UAE residents took advantage of the surge by selling off gold pieces, while others downgraded to lower-carat options like 18K to stay within budget.

On top of that, India’s import duty cut dealt a double blow. Indian nationals — who make up a large portion of the UAE’s gold buyers — are now more inclined to shop back home, reducing the influx of tourist-driven purchases.

Gold closed over the weekend at $3,241.36 per ounce, while in Dubai, 24K gold stood at Dh390.5 per gram. Prices for 22K, 21K, and 18K settled at Dh361.5, Dh346.75, and Dh297.0, respectively.

It's not just jewellery that's feeling the pressure. Bar and coin demand in the UAE also dipped by 5%, reaching 3.1 tonnes from last year’s 3.3 tonnes. Overall gold consumer demand dropped 15% to 11.0 tonnes.

“The gold price was responsible for the bulk of the regional drop in jewellery volumes,” said the World Gold Council, noting the added impact of reduced Indian demand in the UAE.

Still, not every market is down. Saudi Arabia bucked the trend, with Eid spending boosting jewellery demand by 35% and investment in bars and coins up 15%.

“Despite broader declines across the region, these figures highlight gold’s enduring appeal in the Gulf as both a store of value and a culturally significant asset,” said Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council. “As the economic environment remains volatile, we expect investment interest across the region to stay firm in the months ahead.”

Louise Street, Senior Markets Analyst at the World Gold Council, summed it up: “It’s been a bumpy start to the year… investment demand for gold has paved the way for the highest level of first quarter demand since 2016.”

Even with prices cooling slightly and global uncertainty easing, UAE buyers may stay cautious — unless the shine of gold becomes just too tempting to resist.