Gold and jewellery shoppers in Dubai and across the UAE are delaying non-essential purchases and focusing mainly on necessary buying as gold prices hit an all-time high on Tuesday. Some of the gold jewellers in Dubai are reporting softening in demand as shoppers adopt a wait-and-watch approach.

Gold was just shy of $3,700 per ounce on Tuesday afternoon, hitting $3,698.78 per ounce - an all-time high. In the UAE, Dubai Gold Jewellery Group data showed 24K trading at Dh445.25 per gram, while 22K touched Dh412.25 per gram. Similarly, 21K and 18K also rose to Dh395.25 and Dh339.0 per gram, respectively.

“Jewellery sales have slowed considerably. What we're seeing now is very little jewellery buying and more interest in gold bars and coins purely for investment purposes. Sales and footfall are down by nearly 40 per cent as shoppers are clearly holding back on discretionary purchases,” said Anil Dhanak, chairman and managing director of Kanz Jewels.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

Ramesh Kalyanaraman, executive director at Kalyan Jewellers, said there is typically a seasonal dip in demand following the school reopenings in late August, and the current trend is largely aligned with this historical and predictable phase.“We remain confident that both footfall and sales will pick up pace as the festive season gathers momentum,” he said.

Shoppers are selective

Chirag Vora, managing director of Bafleh Jewellers, said industry observations suggest a decline in sales.

“Footfall is healthy, conversions are selective. Store traffic in the Gold Souk and malls remains strong, helped by tourism and residents treating gold as a savings vehicle. Shoppers are becoming more selective, prioritising essential purchases or opting for lighter, more affordable gold pieces ,” said Vora.

He added that shoppers are still buying gold but with a more cautious approach. Despite the all-time high prices , customers continue to invest in gold jewellery and choose lighter-weight pieces, modular bangles, and versatile chains. Average grams per ticket are a bit leaner, but unit volumes hold up,” said Vora, adding that exchange and upgrade culture is thriving.“A lot of customers bring older 22K to swap for new designs or higher-purity investment pieces.”

Vinay Jethwani, Partner at Meena Jewellers, said shoppers are still buying gold as many believe prices may rise even further during the upcoming Diwali season, so they are booking early to secure their purchases.“Gold holds strong cultural and emotional value, and even at record prices, it continues to be the preferred choice for both investment and gifting,” said Jethwani

“We haven't seen a significant drop in footfall as our customers are still visiting in good numbers. However, the trend has shifted towards smaller purchases. Instead of heavier sets, people are now opting for lighter jewellery or smaller pieces, which is a natural response to higher gold prices,” he added.

MENAFN16092025000049011007ID1110070321