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UAE investors and shoppers are quite prudent, and they’re not deterred by the wild fluctuations in gold prices, as many see a drop as an opportunity to enter the market, according to local jewellers.
During periods of high volatility, strategic investors tend to buy more bars and coins due to expectations of a further increase in gold prices.
Gold prices in the UAE plunged over Dh20 per gram in a single session last due to a drop in global rates after investors booked profits following a strong rally during the middle of last month. The gold market saw peaks multiple times during the past few months.
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In 2025 alone, Dubai investors who bought gold coins and bars at the end of 2024 have seen their assets’ value increase by nearly two-thirds in just one year — one of the best years for the precious metal.
Tawhid Abdulla, chairman of Dubai Jewellery Group, said the steady increase in gold price has made customers more thoughtful and value-driven. “When price fluctuates constantly, most purchases are no longer impulsive; buyers are taking more time to understand purity, pricing, buyback value and long-term relevance before making decisions. Customers are still buying, but in lesser volume. The investment-linked buying remains relatively strong. Many buyers are adjusting weight, timing, or product choice,” he said.
Impact on footfall
John Paul Alukkas, managing director for international operations at Joyalukkas, noted that shoppers in the UAE, particularly in Dubai, demonstrate a sophisticated and well-informed understanding of the gold market.
“Daily or weekly price swings are common and well understood — they are viewed as a natural characteristic of the commodity rather than an anomaly. Unlike in many Western markets, this volatility does not automatically discourage footfall or purchasing interest.”
He added that a price dip is frequently seen as a buying opportunity for planned purchases, such as for weddings or festivals, while periods of increase reinforce gold’s enduring value. “The key driver remains the underlying purpose — be it for celebration, investment or tradition — which often transcends short-term price movements. This nuanced behaviour highlights a market that is both informed and resilient.”
For strategic investors or those looking to allocate wealth, Alukkas elaborated, price corrections or dips are often viewed as entry points, potentially leading to increased purchases of bars and coins.
“These buyers are focused on the long-term store of value that gold represents; therefore, a full avoidance is uncommon. Overall, the demand for coins and bars remains robust, as these products are primarily acquired for their investment and savings merit. Wild fluctuations tend to amplify underlying intent rather than deter it completely, with informed buyers using volatility to inform their timing within a broader strategic framework.”
Known as a City of Gold, Dubai’s gold market is known not only for its variety of jewellery, but also for the high demand for gold bars and coins.
Jewellery vs coins, bars
According to Chirag Vora, managing director of Bafleh Jewellers, shoppers here are exceptionally “price-literate”, and they don’t just look at the price tag, they watch the global tickers.
“We see two main groups: strategic buyers who monitor prices closely and buy during dips, and momentum investors who buy quickly, fearing further increases. Many customers now make smaller, regular purchases to average out volatility rather than timing one large purchase.”
Interestingly, he said, while jewellery sales might slow down during a price surge, demand for gold coins and bars often moves in the opposite direction. “Investment gold purchases have actually increased, with buyers shifting toward 24K bars and coins. Smaller denominations (1-10 grams) are most popular as customers want flexibility. Volatility makes buyers more selective, not less active — they prefer pure bullion over jewellery to avoid making charges.
Most gold shoppers are tourists
Anil Dhanak, managing director of Kanz Jewels, added that nearly 90-95 per cent of gold shoppers are tourists from different parts of the world.
“These buyers are on short visits and do not have the luxury of waiting for prices to correct to a desired level. Their primary objective is to shop for gold during their trip, irrespective of short-term price movements, especially since Dubai offers better designs, competitive making charges, and overall better value compared to many global markets,” he said, adding that resident buyers, on the other hand, tend to track prices more closely and often wait for corrections. “However, in many cases, this strategy results in missed opportunities, as gold prices have historically shown an upward long-term trend.”
Dhanak revealed that the behaviour of gold coin and bar buyers is distinctly different from that of jewellery buyers. “Customers purchasing bars and coins usually have an investment-driven mindset rather than an emotional or occasion-based one. During periods of high volatility, some investors prefer to stagger their purchases or wait briefly, while others see sharp corrections as buying opportunities. Overall, investment buyers remain active in the market, as their focus is on long-term value rather than short-term price swings,” he concluded.
Volatility is the new norm
Shamlal Ahamed, managing director for international operations, Malabar Gold and Diamonds, emphasised that consumers have largely adapted to current price levels and now anticipate regular market fluctuations.
“While a smaller segment of price-sensitive customers may choose to defer purchases in anticipation of short-term corrections, overall sales performance across our showrooms remains robust. This indicates a broad acceptance of prevailing gold prices as the new normal. Fuelled by gold’s unique position as both a symbol of adornment and a store of value, jewellery continues to be the fastest-moving category across our retail network.
“Alongside this, we are witnessing a growing inclination towards gold coins and bars among investment-oriented customers, driven by the asset’s physical security, transparency and ease of ownership,” he added.
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