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UAE gold prices drop: Residents save up to Dh1,000 as jewellery sales surge

Gold shoppers across the UAE are returning to jewellery stores in large numbers after a noticeable drop in prices created new opportunities for buyers. The change in pricing has encouraged residents to reconsider purchases they had postponed earlier in the year, leading to a visible increase in both store visits and sales.

Retailers say the renewed interest comes at an ideal moment, as many households are already preparing for seasonal celebrations and upcoming family events. As a result, jewellery showrooms are seeing stronger activity than they had in recent weeks, with customers showing greater confidence when making purchases.

For many buyers, the lower price environment has made gold jewellery feel more accessible again. Items that once seemed too expensive are now being reconsidered, and consumers are taking advantage of the opportunity to buy pieces they had previously delayed purchasing.

Jewellery retailers across the country report that this shift is not only bringing more visitors into stores but also encouraging shoppers to consider larger or more elaborate pieces. Some customers who initially planned smaller purchases are now choosing designs that carry greater weight or more intricate craftsmanship.

Another factor supporting the increase in sales is the ongoing festive shopping season. Many families traditionally purchase gold jewellery as gifts or as part of personal celebrations during this period. With prices now lower than earlier in the year, consumers appear more willing to make those purchases sooner rather than waiting further.

Retail executives say customers are also exploring flexible purchase options that allow them to manage price fluctuations. Advance payment plans and similar schemes have become increasingly popular, allowing buyers to secure current prices while completing their purchase over time. These programs provide additional reassurance for shoppers concerned about future price changes.

Some jewellers note that this combination of favourable prices and festive demand has created particularly strong momentum for the market. Customers who had been watching prices carefully are now stepping in with greater confidence, leading to higher transaction values and more active showrooms.

In addition to gift purchases, gold jewellery remains closely linked with major life events such as weddings and family celebrations. Retailers say many customers are now planning ahead, buying jewellery not only for immediate occasions but also for future ceremonies.

While weather conditions and other short-term factors occasionally influence store traffic, overall demand has remained steady. Retailers expect the positive momentum to continue as consumers take advantage of the current price environment.

The renewed activity has also increased average purchase sizes. When prices fall, customers often feel more comfortable selecting heavier pieces or adding additional items to their purchases. This behavior is contributing to stronger overall sales across the sector.

Behind this surge in demand is a significant change in gold pricing over recent weeks. Earlier this year, gold reached record highs in the UAE market, making many consumers cautious about buying. The recent correction has reversed that sentiment and reopened the market for many buyers.

At its peak in late January, 24-karat gold in the UAE reached around Dh666 per gram. By midweek in late March, the price had declined to approximately Dh553.75 per gram, representing a drop of nearly Dh112.

This price change has had a noticeable impact on jewellery purchases. For example, buyers purchasing around 10 grams of gold jewellery can now save as much as Dh1,000 compared with prices seen earlier this year.

The decline in local prices follows movements in international markets, where gold values have fluctuated in recent weeks. At the same time, global spot gold was trading around $4,542 per ounce during midweek trading, showing modest gains while still remaining below earlier highs.

Industry leaders say this correction has played a key role in restoring consumer confidence. Shoppers who had been waiting for a more favourable entry point are now returning to the market, creating a clear increase in both store traffic and overall sales activity.

With festive demand, upcoming wedding seasons, and renewed interest from investors and gift buyers, jewellery retailers across the UAE are experiencing one of the most active shopping periods in recent months.

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