Gold prices fall for second week in UAE as retailers report rising demand ahead of Eid al‑Adha
Gold prices in UAE fell for a second consecutive week, with retail rates down between AED2.25 and AED3.75 per gram and a two‑week slide totalling AED25.5 per gram.
Market summary: second weekly decline in gold prices
Gold prices in UAE markets recorded a second straight week of declines, driven by a pullback from recent peaks and softer trading sentiment. Retail quotations in Dubai and Sharjah showed per‑gram drops ranging from AED2.25 to AED3.75 across common carats. The cumulative effect over the past two weeks amounts to a fall of AED25.5 per gram, shifting buyer behaviour in local outlets.
Retailers report increased interest in jewellery and bullion
Shop managers and sales teams across the emirates said lower rates have encouraged more customers to visit stores and consider purchases. Demand rose for both finished jewellery and for bullion products, although the scale of improvement varied by store and neighbourhood. Several retail outlets described early signs of a more sustained pick‑up in footfall and enquiries as prices retreated.
Bullion and coins capture the largest share of demand
Buyers showed a marked preference for gold bars and coins amid the recent price pullback, with bullion taking the lion’s share of transactions. Traders attributed this to investor and saver sentiment, where lower spot prices make accumulation more attractive after earlier record highs. Jewellery purchases also benefited, but retailers noted that tangible gifts and investment‑oriented bullion dominated current demand.
Merchants expect Eid al‑Adha to boost jewellery sales
Many jewellers are pinning hopes on the upcoming Eid al‑Adha holiday to lift sales of crafted jewellery, citing longer breaks and increased leisure shopping as catalysts. Retailers said the holiday period typically yields multiple visits from shoppers, which can convert interest into purchases for engagement, wedding and gifting occasions. Stores are preparing promotions and inventory mixes aimed at converting heightened showroom traffic during the festive window.
Retail price breakdown by carat
Current retail quotations show the price of 24‑carat gold at AED543.25 per gram, down AED3.75 from the prior week. The 22‑carat rate stood at AED503.00 per gram with a decline of AED3.50, while 21‑carat gold traded at AED482.25 per gram following a AED3.50 drop. Lower carat offerings were also cheaper: 18‑carat at AED413.50 per gram (down AED2.75) and 14‑carat at AED322.50 per gram (down AED2.25).
How consumers and investors are responding
Consumers are divided between buying jewellery for personal use and accumulating bullion as a store of value, with the latter favoured during price retreats. Some customers view the recent declines as buying opportunities to rebuild holdings after periods of rapid appreciation. Jewellery buyers, meanwhile, remain price‑sensitive and often delay purchases until clear downward trends or promotional events emerge.
Outlook: local demand versus global drivers
While local retail trends are responding to the current drop in gold prices, market participants cautioned that broader global factors will continue to influence direction. Currency moves, international interest rate expectations and shifts in investment flows can quickly alter price momentum. For the near term, retail demand and seasonal spending patterns are likely to shape activity in UAE shops.
Lower rates have already nudged more visitors into showrooms, and merchants are positioning inventory to meet both short‑term jewellery shoppers and investors seeking bullion. Continued volatility could sustain mixed buying patterns, with both opportunistic accumulations and cautious waits expected across consumer segments.