Gold prices in UAE slide for second week as buyers shift to bars and 21–18k jewellery
UAE gold prices fell for a second straight week, sliding up to AED13.25 per gram and prompting a surge in demand for investment bars and 21–18k jewellery across Dubai and Sharjah. Retailers report a two‑week cumulative drop of AED39 per gram has driven consumers toward 20g and 100g bars.
Weekly declines deepen across carats
The market saw meaningful single‑week retreats in local gold prices, with the 24‑carat gram quoted at AED508.50, down AED13.25 from the prior week. Other popular purities also eased: 22k to AED471, 21k to AED451.50, 18k to AED387 and 14k to AED301.75, reflecting falls of between AED9 and AED13.25 per gram.
These moves translate into a broader two‑week correction of about AED39 per gram for the most traded units. Dealers in Dubai and Sharjah signalled that the writedown has been a principal factor shaping buyer behaviour in recent days.
Demand shifts toward bars and saving instruments
Retailers reported a pronounced uptick in purchases of bullion, particularly bars weighing 20 grams and 100 grams, as customers sought to capitalise on lower price levels. Sales staff said smaller investment bars have been especially popular with first‑time buyers and savers who prefer standard weights for resale flexibility.
Market sources also highlighted increased queries for 31‑gram bars and other common sizes, indicating a mix of saving and speculative buying. The trend suggests household and individual investors are treating the current dip as an entry point into physical gold holdings.
Jewellery purchases rise for gifting and everyday use
While investment bars captured the largest share of demand, traditional jewellery remains in steady favour for gifting and personal wear. Retailers reported stronger interest in 21‑carat and 18‑carat pieces, which buyers view as balancing purity and practicality for everyday use.
Demand for plain goldwork—without precious stones—has climbed as consumers look for items that can be worn now and resold later if needed. Shops offering competitive making charges and flexible offers said these promotions have amplified interest in mid‑purity jewellery.
Retailers cite confidence and saving motives
Hossamuddin Abdelrahim, sales director at BTC Gold Trading, said the fall in gold prices has bolstered consumer confidence in buying gold for savings. He noted that greater awareness of gold as a store of value has drawn clients who previously delayed purchases, and that many are converting discretionary cash into physical metal.
Mohammad Dheban, marketing director at Al‑Ramazan Gold Trading Group, added that the recent price correction created a window for customers to upgrade their collections or buy gifts ahead of seasonal demand. He forecast the heightened buying momentum to continue if prices remain attractive.
Promotions and competitive making charges fuel sales
Retail competition on craftsmanship fees has become a notable feature of the current market, with several jewellers offering discounted making charges to stimulate footfall. Traders said these commercial incentives, combined with lower spot prices, make purchases more appealing to both investors and gift buyers.
Ahmed Aneezan, vice president at Salem Al‑Shoaibi Jewellery, observed that promotional packaging and flexible payment options are helping convert enquiries into sales. He cautioned, however, that consumers should weigh making charges and resale terms when selecting items for investment purposes.
Outlook: cautious buying as market watches prices
Analysts and local dealers expect buying activity to remain elevated in the near term so long as the price correction persists. Some retailers anticipate sustained interest in standard bar sizes and mid‑purity jewellery as customers balance liquidity needs with the desire to hold physical assets.
Market observers also noted that external factors—such as global interest-rate moves, currency shifts and demand from regional buyers—could influence near‑term price trajectories. Shoppers and small investors are being advised to monitor price direction and shop around for the best total cost, including making charges.
Lower gold prices have opened a buying window for many UAE consumers, and the market response so far shows a clear tilt toward bars for saving and 21–18k jewellery for gifting and wear.