Gold prices fall sharply in UAE markets as demand for 18K jewellery and small bars rebounds
Gold prices in UAE dropped up to AED25.75 per gram last week, prompting stronger consumer buying in Dubai and Sharjah markets and lifting demand for 18K jewellery and small gold bars.
Sharp weekly declines recorded in Dubai and Sharjah
Gold prices fell significantly at the end of last week, with declines ranging from AED15.25 to AED25.75 per gram across major local markets. Price indices published for Dubai and Sharjah showed the steepest weekly retreats in several months, reversing an earlier period of gains.
Traders and market monitors said the reductions were among the largest single-week drops since the start of 2026. The moves have altered short-term market sentiment and triggered fresh buying interest among retail and small investors.
Retailers report immediate recovery in demand
Several UAE jewellers told local press that the price falls produced an immediate uptick in sales of both bullion and finished jewellery. Retail managers said footfall and enquiries rose as consumers reacted to the lower gold prices and perceived a buying opportunity.
Rikesh Dahnak, director of Rikesh Trading for Gold & Jewellery, said the price correction helped revive sales of small-weight items and prompted customers who had postponed purchases to return. Other store managers echoed that view, noting a tangible improvement in transactions since the declines were posted.
Consumers favour 18K jewellery and small bars
Retailers reported that most jewellery purchases were concentrated in 18-carat pieces, which buyers find appealing because of model variety and affordability. Small and medium-weight gold bars also attracted significant demand from savers and gift shoppers.
Merchants explained that 18K jewellery’s broad style range and lower premium compared with higher carats made it the preferred choice for many domestic shoppers. At the same time, investors seeking a compact, portable store of value gravitated toward smaller bullion denominations.
Price table: per-gram rates and weekly drops
As of the most recent market bulletin, the price of 24-carat gold stood at AED521.75 per gram, down AED25.75 from the prior week. The 22-carat rate was recorded at AED483.00 per gram, reflecting a weekly decline of AED24.00.
Other carats moved similarly: 21-carat at AED463.25 per gram (down AED22.75), 18-carat at AED397.00 per gram (down AED19.75), and 14-carat at AED309.75 per gram (down AED15.25). These figures were compiled from the Dubai and Sharjah price indicators released at the close of trading.
Market drivers and short-term outlook
Analysts and shop managers pointed to a mix of factors behind the retreat, including profit-taking after previous rises and shifts in global sentiment that reduced immediate price support. Several local traders also referenced market commentary suggesting a period of price consolidation near current levels.
Most sellers expect demand to pick up further if prices remain stable, with sales momentum likely driven by seasonal gift-buying and by investors who view the current levels as a buying window. Retailers are preparing for sustained interest in the coming days, particularly for accessible 18K designs and lightweight bullion.
Implications for UAE buyers and savers
For consumers in the UAE, the price drop has lowered the entry point for gold jewellery and bullion purchases, encouraging both discretionary and planned acquisitions. Those buying for gifts or long-term saving are increasingly choosing smaller, cost-effective pieces to maximize value.
Market participants cautioned that gold remains subject to international drivers, including currency movements and macroeconomic data, which could influence local prices. Accordingly, buyers seeking to time purchases may benefit from comparing daily rates across Dubai and Sharjah before committing.
Lower gold prices have already prompted a visible rebound in spending across retail outlets, and jewellers report that the mix of buyers includes both traditional gift purchasers and small-scale investors. The immediate market mood is cautiously optimistic, with many expecting steady demand if prices hold near current levels.