UAE Gold Jewellery Demand Hits Six-Year Low in Early 2026

Regional conflict has drastically impacted UAE gold jewellery sales, with demand hitting a six-year low in early 2026.

Publish date: Sunday، 10 May 2026 Reading time: two min read

UAE Gold Jewellery Demand Hits Six-Year Low in Early 2026

Gold jewellery demand in the UAE plummeted by 40 percent during the first quarter of 2026, reaching a nearly six-year low due to the ongoing regional military conflict.

Data from the World Gold Council revealed that jewellery demand dropped to 4.7 tonnes between January and March 2026, down from 7.9 tonnes during the same period last year. The war outbreak involving the US, Israel, and Iran, which began on February 28, caused a sharp decline in sales throughout March 2026.

Historical data indicates that gold jewellery demand last fell to 3.8 tonnes in the second quarter of 2020, when the Covid-19 pandemic severely impacted sales due to widespread travel restrictions in the UAE and globally.

The ongoing regional conflict has also reduced the flow of tourists to the UAE, further impacting jewellery sales. Foreign visitors, especially in Dubai, traditionally represent a significant portion of gold and precious metal purchases in the region.

Interestingly, while jewellery demand has taken a hit, the appetite for gold coins and bars has surged. In the first quarter of 2026, demand for these investment assets rose by a notable 27 percent year-on-year to reach 4.0 tonnes compared to 3.1 tonnes during the same period last year.

Many residents are pivoting away from jewellery purchases in favor of coins and bars, viewing them as lucrative investment opportunities amid expectations of potential gains in precious metal prices.

On Sunday, gold prices closed at $4,715.6 per ounce, marking a 0.34 percent increase. In Dubai, 24K gold was priced at Dh568.25 per gram, while 22K gold closed at Dh526.25 per gram.

Globally, jewellery demand volumes also remained under pressure, experiencing a year-on-year drop of 23 percent. The World Gold Council anticipates that global jewellery demand will continue to face challenges for similar reasons, despite resilient overall spending patterns.

Gold Under Pressure

While gold prices hit their peak earlier this year, they have been trending downward since the onset of the US-Israel-Iran war, as market participants brace for higher inflation in the US.