UAE: Gold jewellery shoppers buy in smaller, smarter ways as prices near record high

Though high prices have impacted sales, gold remains a sought-after commodity in Dubai, driven by cultural, investment, and gifting motivations

 Shoppers in the UAE are playing smart as they increasingly buy gold and jewellery in smaller and smarter steps as precious metal trades close to an all-time high, jewellers in Dubai said.

Chirag Vora, managing director of Bafleh Jewellers, said gold has traditionally been a stable store of value, encouraging customers to invest despite short-term price fluctuations.

“Customers are accumulating in smaller, smarter steps, prioritising grams and exchangeability, and using coins/bars plus trade-ins to average costs — so the appetite persists even at record prices, but the basket is calibrated for the long run,” he told Khaleej Times.

He added that though high prices have impacted sales, gold remains a sought-after commodity in Dubai, driven by cultural, investment, and gifting motivations.

In Dubai, gold prices hit an all-time high last week as 24K touched Dh445.25 per gram, while 22K hit Dh412.25 per gram. But prices have eased slightly over the past few days, with 24K selling at Dh440.25 and 22K at Dh407.5 per gram on Thursday morning.

Spot gold also crossed $3,700 per ounce for the first time this week, but was trading lower at $3,656 per ounce on Thursday morning, down 0.88 per cent.

Some analysts expect gold prices to drop in the coming months due to profit-taking following a strong rally, before it recovers and hits a new all-time high of $4,000.

Long-term view

Chirag Vora noted that some shoppers are adopting a long-term view, considering gold as a valuable investment for the future.

According to Vinay Jethwani, partner at Meena Jewellers, shoppers in Dubai and the UAE are taking a long-term view when buying gold and jewellery.

“Most of our shoppers are taking a long-term view of gold as a safe and valuable investment… This Diwali, we are easing the burden of high prices with special offers and promotions to give our customers even greater value,” adds Jethwani.

Anil Dhanak, chairman and managing director of Kanz Jewels, said at this point, most customers seem clueless about which way the market will move. “Many are adopting a wait-and-watch approach, unsure whether to buy now or hold back.”

Ramesh Kalyanaraman, executive director of Kalyan Jewellers, also echoed the views of his industry peers, saying customers are increasingly taking a long-term view these days when buying gold and jewellery.