Dubai is currently experiencing a continuous rise in gold prices, with new record highs being set daily. Recently, the global price of gold crossed the $5,500 mark. In Dubai, the price of 22K gold surged past Dh600 per gram for the first time on Thursday, marking a significant milestone in the local gold market.
Despite these soaring prices, the demand for gold jewellery in the UAE has sharply declined. In 2025, the demand for gold jewellery fell by 15% as consumers reacted to the record-high prices. This reduction in volume contrasts with an overall increase in market value, as the higher prices more than compensated for the lower sales volume.
Factors Influencing the Market
- Though fewer people are purchasing gold jewellery, the total market revenue is growing due to price hikes.
- The trend highlights how price sensitivity affects different consumer groups—some reduce purchases, while others continue investing in gold for its value.
- Dubai’s gold market remains dynamic, balancing record-breaking prices with changing consumer behaviour.
The precious metal remains a significant attraction both globally and locally, serving dual purposes for investment and luxury. As Dubai’s gold market evolves, it continues to garner widespread attention from investors and consumers alike.
Stay tuned to Questiqa World News for the latest updates.
About The Author
