UAE Consumers Stretch Gold Jewellery Budgets As Prices Fall Below Dh500

(MENAFN- Khaleej Times) Shoppers in the UAE are stretching their budgets to buy heavier pieces of gold jewellery and larger bars after precious metal prices fell below Dh500 per gram this week in Dubai, according to leading Dubai retailers.

Jewellers told Khaleej Times that customers are using the lower rate to get more for their money, whether by choosing weightier designs, adding an extra item to a purchase or finally buying pieces they had postponed.

Recommended For You

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

Gold prices in Dubai fell below Dh500 per gram on Monday evening amid a stronger dollar and higher oil prices, against the backdrop of the ongoing Middle East conflict.

Gold prices slightly recovered, with 24K trading at Dh501.25 per gram on Wednesday morning. Globally, spot gold was trading at $4,178 per ounce.

Tawhid Abdulla, chairman of the Dubai Jewellery Group, said many customers who had planned to spend a set amount are choosing slightly heavier pieces or adding another item, such as a pair of earrings with a chain. Others are buying jewellery they had put off purchasing for weddings or family occasions.

“We are seeing customers stretch their budgets when they see a price dip. Many who had planned a set amount are choosing slightly heavier pieces or adding an extra item, such as a pair of earrings with a chain. Others are buying pieces they had postponed for weddings or family occasions,” he added.

Anil Dhanak, managing director of Kanz Jewels, said customers are becoming more comfortable with buying heavier pieces or an additional item when the overall ticket value becomes more manageable. Rather than changing their habits completely, he said, many are using the price movement to buy what they had been considering earlier.

John Paul Alukkas, CEO of Joyalukkas Jewellery, said two behaviours emerge when prices ease: some customers go heavier on statement pieces, while others buy more variety within the same budget.“It's less about one trend and more about smart flexibility,” he said.

Investors move to bigger bars

Chirag Vora, managing director of Bafleh Jewellers, said customers generally stick to their intended budgets rather than spending less, and lower per-gram rates allow them to upgrade to heavier statement pieces.

Investors and high-net-worth buyers are also increasing the weight they buy per transaction, he said, moving from 5g and 10g coins to 20g, 50g and 100g bars to minimise making charges per gram.

A psychological milestone

Retailers said the Dh500 level is behind the shift. Vora described it as an easy benchmark for consumers and a strong purchasing catalyst, with residents planning for occasions and anniversaries fast-tracking their shopping.

“The moment gold dipped below Dh500, we saw a very real shift in energy across our showrooms,” said Alukkas, who called the level“something of a psychological milestone for gold buyers here”.

Abdulla said footfall and enquiries have risen across Dubai's jewellery outlets, with demand up for both jewellery and investment products such as coins and small bars, as customers want to buy before prices rise again.

First-time and younger buyers

All the retailers described a mix of regular and new customers. Regular buyers are topping up their holdings, while younger and first-time buyers are entering the market with lighter, contemporary designs, small investment pieces or jewellery for specific milestones.

Alukkas said loyal customers are often timing purchases around exchange offers, while for first-time buyers, the price drop is“an invitation into the gold market for the first time”.

Dhanak cautioned that shoppers are not buying simply because prices have fallen.“Consumers today are much more informed and price-conscious,” he said, adding that they compare rates, designs and making charges before deciding.

Shamlal Ahamed, managing director of international operations at Malabar Gold and Diamonds, said the correction has boosted consumer sentiment and given buyers an added reason to purchase now rather than postpone.

He said purchases of heavier, traditional pieces are gathering momentum ahead of Navratri and Diwali, periods historically associated with heightened jewellery buying.

ALSO READ

Dubai gold prices drop; 22K slips below Dh500 per gram Dubai gold prices: Why UAE residents are locking in rates for Diwali and Navratri Wedding season, festivals to drive UAE gold jewellery buying in coming months

MENAFN30092026000049011007ID1111741494