Market-savvy shoppers in the UAE are resisting a gold rush after prices of the precious metal surged to a three-month high this week. Rather than pile in or hold off entirely, customers are tracking price swings closely and opting for lighter jewellery and smaller coins and bars, retailers say. Gold jumped when the market opened on Monday, with 24-karat trading at 559.50 dirhams per gram, before steadying on Wednesday after four days of gains.
“The market is currently seeing a shift from volume-led buying to value-conscious buying,” said Anil Dhanak, managing director of Kanz Jewels, which has several branches across Dubai, adding that overall demand remained strong even as buyers grew more careful with budgets. Retailers attribute the rally to global economic uncertainty, expectations of interest-rate cuts, a weaker US dollar and continued demand for gold as a safe-haven asset, with central-bank buying also supporting sentiment.
“We generally see consumer interest remain resilient even when prices move higher,” said Tawhid Abdulla, chairman of Dubai Jewellery Group. “Most consumers don’t necessarily postpone a purchase altogether but instead adjust the quantity, product type, or budget.” Rather than stepping back, many are following prices daily and buying on dips. “High prices haven’t stopped buyers,” said Chirag Vora, managing director of Bafleh Jewellers. “Every small dip triggers immediate buying, both in-store and online, as customers rush to lock the rate before it goes up again.”
The shift is visible in what shoppers pick. Vora pointed to a rise in lightweight daily-wear jewellery of 10 to 12 grams, down from around 20 grams previously, alongside 24-karat coins and bars for saving and gifting. “Buyers are becoming far more strategic,” said John Paul Alukkas, chief executive of Joyalukkas, noting that many wait for brief price corrections and use advance-booking offers to lock in rates. Malabar Gold and Diamonds reported similar behaviour, offering a scheme that lets customers pay half or all of the value up front to fix prevailing rates for three or six months.
Coins and small bars are increasingly popular among investment-minded buyers, drawn by lower making charges, while jewellery purchases stay concentrated around weddings and festivals. Demand is also supported by residents buying gold to take home when travelling, and the coming festive season in India is expected to lift it further. “Gold continues to be viewed not only as an ornament but also as a long-term store of value,” said Shamlal Ahamed of Malabar. Higher prices have trimmed the volume bought per transaction, retailers say, but overall interest has held up.
