Shoppers in the UAE are becoming increasingly hesitant to buy gold jewellery, particularly when 22-carat gold prices exceed the Dh370-per-gram mark.

“The UAE jewellery market remains incredibly resilient, even in the face of significant price movements. However, no doubt rising gold prices have made consumers more discerning. We've observed a clear increase in price sensitivity, especially when rates hover around or exceed psychological thresholds, like Dh370 per gram for 22K,” said Aditya Singh, head of International Jewellery Business at Titan Company, Tanishq.

Jewellers across the country confirm this shift in consumer behaviour. While price-consciousness is rising, many buyers are slowly adjusting to the new price range. Currently, most purchases are being made by investors expecting further price hikes, or by residents shopping for essential occasions such as weddings.

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“Casual shopping for gold jewellery is very minimal,” said one gold jeweller.

This year, gold prices have reached unprecedented levels, with global rates peaking at $3,500 per ounce and 24K gold hitting Dh420 per gram in Dubai. On Sunday, spot gold closed at $3,363 per ounce globally, marking a 1.97 per cent increase.

In the UAE, 24K gold was trading at Dh405.25 per gram. Meanwhile, 22K, 21K, and 18K were priced at Dh375.25, Dh360.00, and Dh308.50 per gram, respectively.

The rally in gold prices is attributed to ongoing geopolitical tensions, strong central bank demand, and recent tariff wars. As previously reported by Khaleej Times, Dh400 per gram has become the new standard for 24K gold .

Over the past year alone, gold prices have surged by an impressive Dh100 per gram.

Despite the rising prices, Singh notes that this doesn't always deter buyers. "What we're seeing is more of a shift in how and why people buy. Purchases today are more value-driven, with customers actively seeking promotions, reducing making charges or even shifting temporarily toward diamond or semi-precious jewellery where discounts are deeper," he said.

"At the same time, there's a growing segment of consumers, both residents and tourists, who continue to view gold as a long-term store of value, and are willing to buy when the design, brand or occasion justifies it," Singh added.

This trend is echoed in the latest World Gold Council report for Q2 2025, which indicated a noticeable shift in consumer behaviour. More UAE residents are now opting to invest in gold coins and bars , while cutting back on jewellery purchases.

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