Gold prices in the UAE fall up to AED1.25 per gram as buyers flock to 18K jewellery and 10–30g bullion
Gold prices in the UAE fell up to AED1.25 per gram last week, boosting demand for 18K jewellery and 10–30g bullion as retailers cut making charges and offer discounts.
The UAE gold market recorded a modest but notable retreat in local gold prices at the end of last week, prompting increased activity from both retail and investment buyers. The decline ranged from AED0.75 to AED1.25 per gram across common karats, encouraging purchases of small and medium bullion as well as 18K jewellery. Traders and shop managers reported steady footfall and negotiated deals on making charges that are attracting cost-conscious consumers.
Gold Prices Drop by up to AED1.25 per Gram
Prices for key karats declined across Dubai and Sharjah price feeds, with the 24‑carat gram closing at AED487.25, down AED1.25 from the prior week.
Other commonly traded specifications also eased: 22‑carat fell to AED451.25 (down AED1.00), 21‑carat to AED432.50 (down AED1.25), 18‑carat to AED370.75 (down AED1.00), and 14‑carat settled at AED289.25 (down AED0.75).
The moves reflect incremental price corrections rather than steep volatility, leaving bullion and jewellery prices attractive to buyers who had been waiting for more favorable entry levels.
18K Jewellery and Small Bars Lead Sales
Retailers reported that 18K gold jewellery accounted for the largest share of consumer purchases during the dip.
Shoppers are favoring designs and pieces forged in 18‑carat gold, citing a balance between purity and price that suits everyday wear and gifting occasions. Small and medium bullion bars weighing between 10 and 30 grams emerged as the most sought‑after investment pieces, combining portability with manageable outlays.
Retailers Report Promotions and Reduced Making Charges
Several outlets confirmed they were offering more competitive making charges and occasional discounts to stimulate sales.
Sales managers said some promotions were openly advertised while others were handled through negotiation at point of sale, allowing customers to secure better net prices on rings, chains and small bars. This pricing flexibility has helped convert foot traffic into completed purchases amid the recent price slide.
Buyers See Gold as a Savings and Liquidity Tool
Market participants noted that consumer confidence in gold as a long‑term savings vehicle remains strong, supporting sustained demand.
Many customers cited intentions to hold pieces and bars for extended periods as a form of savings, with the option to sell when liquidity is needed. This behaviour reinforces gold’s dual role in the UAE as both a cultural asset and a practical store of value.
Traders’ Perspectives on Current Demand Patterns
Riki Dahnak, director of Riki Trading for Gold & Jewellery, said buyers were taking advantage of the softer price levels, particularly for small and medium bars.
He added that the drop into more attractive price territory has been a key driver for both first‑time buyers and seasoned collectors seeking to expand holdings without a large cash outlay.
Competition among Shops Keeps Pressure on Margins
Dealers also highlighted competitive dynamics, with some stores absorbing part of the price correction to maintain market share.
Del Sun, a sales manager at Daim Trading for Gold & Jewellery, noted that firms are balancing lower retail margins against higher volumes by promoting reduced craftsmanship fees and payment options. Such tactics aim to keep customers in the market rather than postponing purchases until prices rise.
The retail footprint for gold in the UAE continues to reflect a mix of traditional buying motives and opportunistic investment behaviour. As prices settle at relatively lower levels compared with recent peaks, demand has broadened to include both gift buyers and investors looking for compact bullion options.
Overall market activity suggests that modest downward movements in gold prices can quickly translate into firmer retail demand when accompanied by store promotions and flexible pricing. Consumers and traders alike will be watching future price trends to gauge whether the current levels represent a buying window or a temporary correction.