UAE gold buyers are exercising caution as prices of the yellow metal reach unprecedented levels, sparking a noticeable shift in consumer purchasing behavior.
Industry experts have reported that many shoppers are adopting a “wait-and-watch” approach, delaying purchases in hopes that prices may eventually drop.
Earlier this week, gold prices soared to an all-time high of $2,882.16 per ounce globally, which caused prices in Dubai to rise accordingly.
On Thursday morning, 24K gold was trading at Dh345.75 per gram, while 22K gold reached Dh321.50 per gram, both marking record highs.
Anuraag Sinha, Managing Director of Liali Jewellery, explained that the surge in gold prices has caused shoppers to reconsider their purchases.
However, he noted that this trend does not extend to diamond buyers. “Diamond-buyers tend to make decisions based on their love for the product rather than price fluctuations,” Sinha stated.
John Paul Alukkas, Managing Director of Joyalukkas Group, added that while some customers are waiting to see if prices fall, many still view gold as a valuable, long-term investment.
“A significant portion perceives gold as a timeless asset, investing in it for special occasions and long-term value, despite the price volatility,” he said.
For shoppers in the UAE, the wait-and-watch strategy is often more feasible for residents, who have the option to delay purchases in response to price hikes.
Shamlal Ahamed, Managing Director of International Operations at Malabar Gold and Diamonds, noted that tourists are less likely to be deterred by price increases due to the wide variety of gold jewelry designs available.
Anil Dhanak, Managing Director of Kanz Jewels, agreed that the price hike is affecting some buyers, leading them to hope for a potential price correction.
However, he emphasized that festivals, weddings, and gifting occasions continue to drive demand, with many customers adjusting their budgets to suit the current prices without compromising on design.
Chirag Vora, Managing Director of Bafleh Jewellers, pointed out that minor fluctuations in gold prices do not deter retail buyers, especially when they are purchasing in small quantities.
“Historically, gold prices have always risen in the long run, making it the right time to invest in gold jewellery,” he said, highlighting that special events like weddings and festivals remain a consistent driver of demand.
Despite the price hike, the allure of gold remains strong in the UAE. Shamlal Ahamed noted a shift in consumer preferences toward lightweight jewelry, as buyers seek more affordable options without sacrificing style.
This trend is an indication of how customers are adapting to the high prices while still maintaining interest in gold as a valuable, consumable investment.
Alukkas further elaborated that while rising prices may cause some buyers to hesitate, gold continues to hold its status as a reliable asset.
“We continue to see strong interest in our collections, and consumer sentiment remains positive,” he said. In conclusion, while gold prices have reached historical highs, the UAE’s gold market shows resilience.
Whether delaying purchases or opting for more budget-friendly designs, shoppers continue to value gold for its lasting appeal and status as a steady investment, even amid price fluctuations.