Gold Prices In Dubai: Jewellery Shoppers Focus On Budget Rather Than Weight

Gold jewellery shoppers in Dubai and the UAE are adapting to consistently high prices, focusing on fixed budgets rather than on the weight of gold purchased.

Gold prices have been trading close to an all-time high reached earlier this month when 24K and 22K hit Dh445.25 and Dh412.25 per gram, respectively.

Globally, the precious metal crossed $3,700 per ounce earlier this month, before settling at $3,785.78 per ounce over the weekend. Analysts expect a correction in prices, and then prices will recover to touch $4,000 next year.

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Ramesh Kalyanaraman, executive director at Kalyan Jewellers, said while higher prices are influencing buying patterns, customers are not stepping away from purchases – instead, they are adapting.

“Many now shop with a fixed budget in mind rather than focusing on grammage, ensuring they can still celebrate special occasions within their comfort range. There has been a notable increase in exchanges, with customers upgrading older pieces into contemporary designs, making smart use of their existing jewellery,” added Kalyanaraman.

Jewellers are also pinning hopes on the upcoming festivals such as Diwali and Dhanteras, which will be celebrated in October. A lot of Asians, especially the followers of the Hindu religion, buy precious metal ornaments for gifts, boosting sales for UAE jewellers.

As the gold prices continue to stay on the higher side, shoppers - especially those with a tight budget - are increasingly opting for smaller-sized and budget gold jewellery ornaments.

“We are also seeing growing interest from younger, style-conscious shoppers in 18K lightweight designs that combine lifestyle appeal with a more accessible price point,” added Kalyanaraman.

According to Dubai Jewellery Group data, 21K and 18K were selling at Dh394.0 and Dh338.0 per gram, respectively, on Sunday.

The executive director of t Kalyan Jewellers elaborated that shoppers recognise gold's enduring value and its track record of consistent appreciation, which reinforces its appeal as a secure asset.“This is reflected in the strong response to our Dhanteras advance and pre-booking offers. The notable rise in pre-bookings, supported by rate protection, highlights how customers are strategically planning purchases and safeguarding against further price movements – clear evidence that gold jewellery continues to hold lasting relevance,” he added.

Frank Walbaum, market analyst at Naga, said gold prices were relatively steady and remained above the $3,640 level, leaving the metal on track for a flat or marginally positive weekly close after four weeks of strong gains.“Profit-taking after hitting record highs on Wednesday and a rise in US Treasury yields weighed on sentiment, but safe-haven demand helped limit losses. Markets continued to digest the US Federal Reserve's 25-basis-point rate cut on Wednesday,” he said.

“Meanwhile, global policy developments added to the backdrop, with both the Bank of England and Bank of Japan holding interest rates steady. However, geopolitical tensions in the Middle East and Eastern Europe continued to be a key support for bullion,” added Walbaum.

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