Dubai is experiencing a significant milestone as gold prices continue to reach unprecedented heights. The global price of gold recently surpassed the $5,500 mark, causing the price of 22K gold in Dubai to soar above Dh600 per gram for the first time. This surge underscores the increasing value of gold in the region.
However, this sharp rise in prices has affected consumer behavior, particularly the demand for gold jewellery in the UAE. In 2025, there was a notable 15% drop in demand by volume. Many buyers are hesitant to make purchases due to the record-high prices, resulting in fewer transactions. Experts suggest that consumers are becoming more cautious when spending on luxury items like gold jewellery.
Interestingly, despite the decline in volume, the total spending on gold jewellery has increased in value terms. This indicates that although fewer pieces are sold, the higher prices have compensated for the volume decrease. Various markets across the UAE have reported this trend, revealing a complex relationship between pricing and buyer behavior.
This development highlights the evolving dynamics of the gold market in Dubai and the broader UAE. Industry observers continue to monitor the situation closely to assess its impact on both the local economy and consumer patterns.
Stay tuned to Questiqa World News for the latest updates.
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