Dubai has witnessed a significant surge in gold prices, recording the best monthly gain in five decades. On Thursday evening, the price of 24K gold stood at Dh664.5 per gram, just shy of the all-time high of Dh666 reached earlier that day. This increase aligns with global trends and has sparked strong interest from investors.
However, despite the rise in gold prices, the demand for gold jewellery in the UAE has dropped sharply. In 2025, jewellery demand fell by 15%. This decline is primarily due to the record-high gold prices, which have made jewellery less affordable for many consumers. Interestingly, when demand is measured in value terms rather than volume, there has been an increase. The higher gold prices have compensated for the reduced sales volume.
Similar patterns are observable across all gold markets, where value demand is up despite a decrease in the volume of sales. Market experts predict that this trend will persist as investors continue to view gold as a safe haven asset amidst ongoing global economic uncertainties.
The combination of rising gold prices and falling jewellery demand reveals a notable shift in Dubai’s gold market. While consumers are purchasing less jewellery due to cost concerns, investors are increasingly turning to gold as a strategic asset, impacting both sales figures and investment dynamics.
For more updates on this evolving story, stay tuned to Questiqa World News.
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