Gold jewellery sales in the UAE have picked up as prices have dropped after peaking in October, according to jewellers in Dubai.

The precious metal jewellery sales took a hit as demand fell to a five-year low in the third quarter of 2025 due to high prices, according to the World Gold Council data.

“Jewellery sales have seen a slight increase in demand after October's peak in gold prices. This dip is seen as an opportunity for bargain hunters. Customers are approaching their purchases strategically, and we are noticing a shift towards lighter, more affordable gold pieces,” said Chirag Vora, managing director of Bafleh Jewellers.

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“As prices eased off the peak, shoppers have been willing to buy again, yet they're prioritising affordability. Many are tracking gold rates closely before making a purchase. We're also seeing a rise in customers prioritising investment-led buying, choosing timeless, versatile pieces that can serve both as a store of value and a fashionable accessory,” Vora said.

Anil Dhanak, managing director of Kanz Jewels, said sales have picked up recently.“The easing of gold prices has encouraged buyers to return to the market, and the onset of the winter season - which typically sees higher tourism and festive demand - has further boosted jewellery sales,” he added.

Gold peaked in October when 24K prices hit Dh525 per gram in Dubai. On the weekend, 24K, 22K, 21K and 18K were trading at Dh482, Dh446.25, Dh428 and Dh367 per gram, respectively.

Spot gold closed at $4,001.21 per ounce over the weekend.

World Gold Council data for the third quarter of this year showed that the yellow metal jewellery demand in the UAE fell to 6.3 tonnes during the third quarter of 2025, hitting a five-year low as prices reached a record high.

Gold jewellery demand during July-September 2025 fell 10 per cent year-on-year to 6.3 tonnes compared to 7.1 tonnes during the same period last year.

Meanwhile, quarter-on-quarter demand plunged 18 per cent. This was the lowest quarterly gold jewellery sales since the third quarter of 2020, when sales hit 3.8 tonnes.

Gold coins and bar demand also fell during the third quarter in the UAE - but at a slower pace than jewellery - as people bought coins and bars for investments, expecting prices to rally further.

The World Gold Council data showed bar and coins demand fell 6 per cent year-on-year to 3.4 tonnes during the third quarter this year. Meanwhile, quarter-on-quarter sales of coins and bars fell 18 per cent.

Overall, gold demand in the UAE fell 9 per cent year-on-year to 9.7 tonnes during the July-September 2025 period - the lowest level since the second quarter of 2021 - when demand hit 8.8 tonnes.

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