Dubai is currently experiencing a significant surge in gold prices, setting new record highs on a daily basis. The global gold price has recently surpassed the $5,500 threshold, leading the 22K gold price in Dubai to exceed AED 600 per gram for the first time. This extraordinary increase is having a major impact on the local gold market.
Jewellery Demand Decline Amid Price Rise
In 2025, the UAE saw a 15% drop in demand for gold jewellery. The primary reason for this decline is consumers’ reluctance to purchase gold at such elevated prices. Despite this reduction in purchase volume, the total value of gold jewellery sales rose due to the surge in gold prices. This indicates that while fewer pieces of jewellery are being bought, the overall expenditure on gold continues to increase.
Market Activity and Investor Perspectives
The gold market in Dubai remains highly active with fluctuating demand alongside soaring prices. Both investors and buyers are closely monitoring these dynamic changes as they have significant implications for the local economy as well as global gold markets.
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