Dubai Gold Jewellers Offer Discounts, Lock-In Rates As Prices Hit Record High

(MENAFN- Khaleej Times)

Gold jewellers in Dubai are trying to woo customers through discounts, loyalty programmes, and lock-in rate protection offers amidst record-high prices.

Aditya Singh, head of international jewellery business at Titan Company, said jewellers are responding to high gold prices with innovation and customer-centric strategies.

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"Promotions on making charges, flexible payment options, and exchange offers are being used to ease purchase decisions. Additionally, jewellers are launching new collections at more accessible price points and investing in customer education around purity and long-term value, reassuring buyers that gold remains a meaningful, emotional, and financial investment," Singh said.

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Gold prices hit an all-time high on Wednesday when 24K hit Dh428.75 per gram while 22K reached Dh396.75 per gram. Globally, yellow metal crossed $3,560 for the first time.

Prices eased slightly on Thursday as 24K was trading at Dh426.25, 22K at Dh394.75, 21K at Dh378.5, and 18K at Dh324.5 per gram. Spot gold was trading at $3,547.94 per ounce, down 0.67 per cent on Thursday afternoon.

This gold rally has prompted many jewellers in Dubai - known as the City of Gold - to revise their customer-focused strategies to woo shoppers, especially budget-conscious people who put their expensive purchases on hold.

According to the World Gold Council, gold jewellery demand in the UAE declined by 16 per cent year-on-year, falling to 7.7 tonnes in the second quarter of 2025 from 9.2 tonnes in the same period last year. This marked the second consecutive quarterly decline in jewellery consumption due to prices consistently hitting an all-time high.

Aditya Singh said categories like diamond-studded and non-traditional gold jewellery are gaining traction, while international markets are showing strong interest in trusted brands with transparent pricing values.

He emphasised that there's a noticeable shift towards lightweight, contemporary designs that maintain aesthetic appeal while using less gold.

Foreseeing this volatility in gold price, Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, said they have launched the gold rate protection offer ahead of the festive season, where customers can benefit regardless of the gold price fluctuations.

"Customers can just pay 10 per cent of the amount as an advance and block the gold rate. If the gold rate increases, customers can get the blocked rate, and if it reduces, customers will get the lower gold rate," he said.

Similarly, Joyalukkas is also running a campaign where shoppers can pre-book their jewellery by paying 10 per cent advance. In addition, it offers shoppers gift vouchers on purchases through the mobile app, tapping into the growing preference for online shopping.

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