Dubai has recently experienced record-breaking gold prices, with the global price of gold surpassing the $5,500 mark. In the city itself, the price of 22-karat gold has soared above Dh600 per gram for the first time, underscoring Dubai’s significant role in the international gold market.
However, despite these soaring prices, the demand for gold jewellery in the UAE has declined by 15% in 2025. This drop is primarily due to buyers being cautious about the high costs, which has led to a notable reduction in the volume of jewellery purchased. Yet, interestingly, the total value of gold jewellery sales has increased because the increase in price has compensated for the lower quantity sold.
Market Dynamics and Impact
This situation illustrates a complex market dynamic where:
- The value of sales grows even as the quantity demanded falls.
- Traders, retailers, and consumers are all affected by these changes.
- While gold bars and jewellery remain highly desirable, challenges related to affordability influence purchasing behaviors.
Stay tuned to Questiqa World News for the latest updates on this evolving market.
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