Gold prices rise for third straight week in UAE as retailers cut making charges
UAE gold prices rose for a third consecutive week, gaining between AED 5.75 and AED 10 per gram last week as local indicators in Dubai and Sharjah showed continued upward movement. The cumulative increase over the three-week run has reached AED 41 per gram, prompting retailers to roll out promotional making‑charge discounts. Market sources say the rises and retail incentives are reshaping buying patterns as consumers treat gold as a hedge.
Gold prices climb for a third consecutive week
The UAE market recorded steady week-on-week gains across common purities, reflecting both global bullion trends and local buying interest. Retail price lists in Dubai and Sharjah showed notable jumps in the previous trading week, maintaining the upward momentum that began two weeks earlier. Traders and shop managers described the pattern as sustained rather than sporadic, citing stronger inquiries and sales for certain items.
Retailers cut making charges to spur sales
Several outlets have introduced discounted making charges to draw customers and protect sales volumes amid rising metal prices. Retailers are competing on service fees and promotions rather than base price alone, offering variable reductions depending on store policy and product lines. Industry sources said these campaigns are intended to offset the sticker shock of higher per-gram prices and keep footfall steady.
Buyers treat gold as a hedge against uncertainty
Retail executives reported that many expatriate and resident buyers are choosing gold as a safe-haven asset, with demand persisting despite price increases. Aditya Singh, head of international jewellery at Titan, said confidence in gold as a store of value tends to strengthen during uncertain times and that this sentiment is supporting purchases. He added that elevated prices do not necessarily deter buyers; rather, they often reinforce the decision to acquire physical metal for security.
Purchase patterns shifting toward lighter pieces and gifts
Retailers expect a change in how people buy — not necessarily a sharp rise in total volumes but a moderation in average bill sizes. Customers are increasingly opting for lighter-weight jewellery, smaller investment pieces and ready-made gift items that carry lower making charges. Shop managers noted a discernible uptick in enquiries for these categories, which balances affordability with continued demand for gold ownership.
UAE retail rates and recent weekly gains per gram
At the retail level, the per-gram price of 24-carat gold reached AED 582.25 last week, up by AED 10 from the previous close. Prices for other common purities increased in tandem: 22-carat rose to AED 539 (+AED 9.25), 21-carat to AED 517 (+AED 9), 18-carat to AED 443 (+AED 7.50) and 14-carat to AED 345.50 (+AED 5.75). These moves contributed to a total rise of about AED 41 per gram over the three-week period recorded by local price indicators.
Sales outlook and expectations for further increases
Market participants expect demand to remain resilient in the near term, underpinned by the dual forces of investor hedging and retail promotions. Several traders said they anticipate further upward pressure on prices globally, which would likely keep local rates elevated and sustain consumer interest. Industry sources also warned that while discounts on making charges can stimulate purchases, they do not alter the underlying trend of rising bullion costs.
Retailers and buyers alike are watching price signals closely as the market adjusts to the recent gains and promotional strategies. Continued monitoring of international bullion markets and local demand indicators will determine whether current buying behavior consolidates or shifts again in coming weeks.