UAE shoppers take a measured approach to gold as prices hit three-month high

Market backdrop

Gold prices rose to a three-month high earlier this week, prompting a cautious but sustained response from buyers in the UAE. When markets opened on Monday, 24karat gold traded at Dh559.50 per gram. After four straight days of rallies, prices steadied on Wednesday as some investors and consumers paused to watch shortterm moves.

Retailers say several macro forces are underpinning demand and sentiment: geopolitical uncertainty, hopes of future interestrate cuts, a softer US dollar and continued investor appetite for gold as a safe haven. Central bank purchases have also helped support prices.

How consumers are reacting

Rather than sparking a run on the shops, higher prices have sharpened shoppers behaviour. Industry figures describe a shift from volumeled buying toward more valueconscious, strategic purchases. Customers are tracking prices closely and increasingly buying during brief dips, rather than stepping away from the market entirely.

Jewellery houses report a clear change in the product mix. Lightweight dailywear items typically 1012 grams are becoming more popular compared with the roughly 20gram pieces that were common before. There is also rising interest in 24karat coins and small bars, prized by investmentminded buyers for lower making charges and the ability to buy in smaller denominations. Wedding and festival purchases continue but are often staged over time rather than made in a single transaction.

Anil Dhanak, managing director of Kanz Jewels, said the market is moving from "volumeled buying to valueconscious buying" even as demand overall remains robust. Tawhid Abdulla, chairman of the Dubai Jewellery Group, noted that consumers remain engaged with the market but are more mindful about timing and value.

Chirag Vora, managing director of Bafleh Jewellers, described the new shopping rhythm: High prices haven't stopped buyers they are tracking rates daily. Every small dip triggers immediate buying, both instore and online, as customers rush to lock the rate before it goes up again.

John Paul Alukkas, chief executive of international jeweller Joyalukkas, said buyers are becoming more disciplined, waiting for brief price corrections to enter the market. His company is also promoting advancebooking offers that allow customers to lock in current rates.

Malabar Gold and Diamonds which operates across 14 countries reports similar behaviour: customers are spending more time evaluating designs and budgets, and conversion rates have remained steady. The companys managing director for international operations, Shamlal Ahamed, emphasised that gold is still viewed as both ornament and longterm store of value, sustaining buying intent even during volatile periods.

To help customers manage swings, Malabar offers schemes that let buyers pay 50 per cent or 100 per cent up front to lock prevailing rates for three or six months, with the option to purchase at a lower rate if prices fall within that window.

Outlook and seasonal demand

Retailers expect demand to get a further boost from the upcoming festive season in India, when jewellery buying traditionally rises. They also point to cultural factors gifting at weddings and celebrations, and residents purchasing gold to take home while travelling that underpin the Emirates resilient demand base.

While higher prices have generally reduced the weight of gold bought per transaction, industry leaders say that customers adjust weight, design or timing rather than postponing purchases altogether, particularly around weddings and festivals.