Gold Prices Reach All-Time High
Gold and jewelry buyers in Dubai and the United Arab Emirates are delaying non-essential purchases and focusing on necessary buys as gold prices reached an all-time high. Some golden jewelers in Dubai report that buyers are adopting a wait-and-watch approach.
Current Gold Prices
Gold prices reached $3,698.78 per ounce on Tuesday afternoon, with 24K gold selling at DH445.25 per gram, 22K at DH412.25 per gram, 21K at DH395.25 per gram, and 18K at DH339.0 per gram in the United Arab Emirates.
Impact on Jewelry Sales
According to Anil Dhanak, chairman and managing director of Kanz Jewellery, "Jewelry sales have slowed down considerably. We see very little interest in jewelry and more interest in gold bars and coins for investment purposes. Sales and footfall have decreased by almost 40 percent, as buyers are clearly holding back on discretionary purchases."
Seasonal Demand
Ramesh Kalyanaraman, managing director of Kalyan Jewellers, noted that after schools reopen, a seasonal demand usually kicks in by the end of August, and the current trend is largely in line with this historical and predictable phase. "We are still confident that both footfall and sales will pick up pace when the festive season gains momentum," he said.
Buyers’ Selectivity
Chirag Vora, Managing Director of Bafleh Jewellers, observed that while footfall is healthy, conversions are selective. "Traffic in the Gold Souk and shopping centers remains strong, driven by tourism and residents who treat gold as a savings vehicle. Buyers are becoming increasingly selective, prioritizing essential purchases or choosing simpler, more affordable gold pieces," said Vora.
Shift in Buying Trends
Vora added that buyers are still purchasing gold but with a more careful approach. Despite high prices, customers continue to invest in gold jewelry, opting for lighter pieces, modular bracelets, and versatile chains. "Average grams per ticket are a bit slimmer, but unit volumes are staying, and the exchange and upgrade culture is flourishing," said Vora.
Cultural and Emotional Value
Vinay Jethwani, partner at Meena Jewellers, noted that buyers still purchase gold as many believe prices may continue to rise in the upcoming Diwali season, prompting them to book early to secure their purchases. "Gold has a strong cultural and emotional value and is still the preferred choice for investments and gifts at record prices," said Jethwani. He added that while there hasn’t been a significant decline in footfall, the trend has shifted to smaller purchases, with people opting for lighter jewelry or smaller pieces in response to higher gold prices.
