Dubai’s gold jewellery market has witnessed a significant 15% decline in demand in 2025, a surprising development largely attributed to record-high gold prices globally. The price of 22K gold in Dubai has surged to over Dh600 per gram for the first time, while internationally, gold has crossed the $5,500 threshold.
Despite this drop in buyer volume, the total value of gold sales has increased. This increase is due to the soaring gold prices compensating for fewer customers purchasing gold jewellery. As a result, many consumers in Dubai and the UAE are becoming more selective with their gold purchases, feeling the impact of these unprecedented costs.
Key Points Impacting Dubai’s Gold Jewellery Market
- Gold prices have hit new all-time highs both locally and globally.
- Demand for gold jewellery has dropped by 15% due to higher costs.
- The overall sales value has increased despite fewer transactions.
- Consumers are more cautious and selective in their buying decisions.
- Experts caution that continued price volatility may further reduce demand.
- Dubai remains a crucial global hub for gold trading.
This situation not only highlights the challenges facing the UAE’s gold jewellery sector but also mirrors broader global trends in the precious metals market. Investors and buyers worldwide are closely watching these developments, which may influence future market dynamics.
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