Record Gold Prices Push UAE Families To Buy Fewer, Lighter Wedding Jewellery Pieces

When Maryam Alshamsi began preparing for her son's wedding, soaring gold prices prompted her family to rethink how they would buy jewellery.“We are still buying gold, but we've become more careful and selective than before.”

Instead of purchasing multiple heavy pieces, the family reduced the overall weight of their wedding jewellery.

“We decided to focus on fewer items that are meaningful and practical,” Alshamsi said, adding that lighter designs remain elegant while keeping costs under control. She also noted that reusing heirloom jewellery has become more common.“It helps reduce costs and adds emotional value to the wedding,” she said.“Gold is still essential for weddings. Even if the quantity is smaller, having gold remains a must.”

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Alshamsi's experience reflects a broader shift unfolding across the UAE as gold prices continue to trade near record highs. Families are adjusting wedding jewellery purchases by opting for lighter designs, lower caratage and more selective buying, while keeping gold firmly embedded in wedding traditions.

Market analysts say the rally in gold prices is being driven by global geopolitical uncertainty and a structural shift in institutional demand. Monal Thakkar, managing director at Ashoka Global FZCO, said the surge reflects more than short-term volatility.

“What we are witnessing is not a typical price cycle,” Thakkar told Khaleej Times.“Central banks are making a long-term strategic shift toward gold, effectively locking away supply and reshaping the market for years to come.”

According to Thakkar, this sustained institutional buying has created a strong price floor, even as retail buyers become more cautious.“Retail demand may slow during periods of record prices, but gold's role as a strategic asset has strengthened,” he said.“This has created stability in prices, even when consumer behaviour adjusts.”

Shift in UAE buying patterns

In the UAE, particularly Dubai - long known as the 'City of Gold' - rising prices have prompted a visible change in consumer preferences. Traditionally, weddings favoured high-carat jewellery, with 22K and 21K gold forming the bulk of bridal sets.

“In the UAE, cultural demand for gold remains intact, but consumers are becoming smarter,” Thakkar said.“There is a clear shift toward 18K and even 14K jewellery, along with lightweight and minimalist designs that balance tradition with affordability.”

Jewellers, he added, are responding by focusing on design and craftsmanship rather than weight.“This is not a decline in demand,” Thakkar said.“It is an evolution driven by price sensitivity and value awareness.”

Echoing this view, Vijay Valecha, chief investment officer at Century Financial, said gold's strength continues to be supported by institutional flows, geopolitical risks and expectations of lower interest rates.

“Gold prices are being driven by a powerful combination of institutional demand, geopolitical risk, and expectations of lower interest rates,” Valecha told Khaleej Times.“This makes the current rally structurally supported, even if we see periods of short-term stabilisation.”

For weddings, Valecha said higher prices influence purchasing behaviour rather than eliminate demand.“For weddings, higher gold prices don't eliminate demand - they reshape it,” he said.“Families prioritise tradition while adjusting the quantity and timing of purchases.”

He added that many families are choosing fewer heavy pieces, opting for lighter designs or exchanging existing jewellery.“Gold remains a store of value rather than a speculative asset,” Valecha said.“In the context of weddings, stability matters more than short-term price movements.”

Despite elevated prices, experts say weddings continue to be a resilient source of gold demand in the UAE, particularly during peak periods such as the Dubai Shopping Festival. While volumes may soften, the cultural importance of gold ensures steady demand.

As Valecha summed it up,“The quantity may change, but gold's role in weddings does not disappear.”

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