Gold prices fall for a second week in UAE as buyers increase purchases of jewellery and bullion
UAE gold prices fell for a second consecutive week, dropping between 7.25 and 12.25 AED per gram and prompting higher purchases of jewellery and bullion by local buyers.
The UAE witnessed a fresh round of weakness in gold prices last week, with average declines ranging from 7.25 to 12.25 dirhams per gram across major weightings. The retreat, recorded in Dubai and Sharjah price indicators, extended a downward trend that totals about 18.75 dirhams per gram over the past two weeks. Retailers and traders say the softer levels have encouraged both household buyers and small investors to step into the market.
Prices slide for a second straight week
The market recorded notable falls across common carats, with the most pronounced drop seen in 24-carat gold. 24-carat bullion traded near 484.25 dirhams per gram at the end of last week, down roughly 12.25 dirhams from the prior week’s close. The pattern of weekly declines has altered buying behaviour, according to local price bulletins and shop tallies from Dubai and Sharjah.
Industry sources say the recent moves were consistent across trading hubs, and the two-week cumulative fall — roughly 18.75 dirhams per gram — has been the main factor prompting renewed retail interest. Jewellery outlets reported steadier footfall compared with earlier in the quarter as consumers responded to the lower price environment.
Retailers report stronger demand for jewellery and bars
Store managers and sales executives across the UAE described a clear uptick in customer activity during the price dip. Manj Balkar, a sales manager at a Dubai gold and jewellery outlet, said shoppers have returned to stores to take advantage of the lower levels and to buy items for family occasions. Another local retailer noted that many customers are choosing ready-made jewellery for immediate use while others favour bullion for longer-term saving.
Retailers added that promotional activity and flexible financing offers at some shops have also aided sales, though staff emphasised that most buyers cited the lower metal price as the primary trigger. The mix of customers includes those seeking gifts and those treating gold as a partial savings vehicle amid ongoing price volatility.
Detailed breakdown by carat and weekly changes
Price indicators showed a consistent pattern across popular carats. 22-carat and 21-carat gold fell alongside 24-carat metal, with 22-carat at about 448.25 dirhams per gram and 21-carat around 430 dirhams. Lower carats also moved down, with 18-carat near 368.50 dirhams per gram and 14-carat at approximately 287.50 dirhams.
Weekly declines for individual carats ranged from roughly 7.25 dirhams for 14-carat to about 12.25 dirhams for 24-carat gold. Market watchers say those per-gram moves are significant for retail buyers, who frequently make purchase decisions based on marginal price shifts and short-term affordability.
Why buyers are splitting between gifts and investment
Retailers report two main buyer profiles emerging from the recent slide: consumers purchasing jewellery for social and family occasions, and investors buying bullion for savings. Many households prefer jewellery for its immediate utility and cultural role in weddings and gifting, while investors focus on bars and coins that can be held until a future price recovery.
Sales managers caution that bullion purchases are best made from surplus disposable funds rather than by borrowing, reinforcing a common market recommendation that gold buying should not be financed with debt. Several retailers also urged buyers to verify purity and documentation when purchasing bars, and to work with reputable dealers to minimise counterparty risk.
Market outlook and international context
Local traders linked the UAE price moves to broader international trends that have softened metal values in recent sessions. While short-term sentiment has pushed prices lower, several analysts and international reports cited by market participants still expect gold to remain an attractive hedge over longer horizons. Those expectations have encouraged some buyers to treat dips as tactical entry points rather than signs of a sustained slump.
However, sources stressed that near-term direction remains sensitive to global macro developments, currency flows and central bank signals, and that consumers should weigh timing and objectives before making larger purchases. Retailers continue to monitor international markets while adjusting local inventory and promotional strategies to match demand.
As retailers report higher activity, consumers and small investors in the UAE are responding to the lower gold prices with a mix of immediate jewellery buys and selective accumulation of bullion. The coming weeks will show whether demand sustains the recent momentum or eases if prices stabilise.
