UAE Gold Market Shifts: Residents Opt For Bars Over Jewellery Amid Uncertainty

(MENAFN- Khaleej Times) Aditya SinghUAE residents are shifting from buying gold jewellery to strategic wealth preservation as demand for gold bars sees a notable increase amid ongoing uncertainties due to military conflicts.

Gold jewellers in the UAE are reporting a softening in sales and a drop in footfall as buyers’ preferences shift amid changing market dynamics.

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“While travel disruptions have led to a temporary softening in sales volume for jewellery, we are seeing a magnificent surge in investment demand. The temporary airport closure created logistical friction,” said Ramesh Vora, founder of Bafleh Jewellers.

He added that local and regional buyers are shifting their focus to 24-karat bars and coins.“We aren’t seeing a ‘drop’ in interest - rather, a sophisticated migration from ornamental buying to strategic wealth preservation.”

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Gold prices spiked initially last week due to the war in the region, but steadied later.

Globally, spot gold prices closed at $5,171.92 per ounce over the weekend, up 0.42 per cent. In the UAE, 24K and 22K gold prices were trading at Dh623.25 and Dh577.25 per gram, respectively.

Slower decision-making

John Paul Alukkas, CEO of Joyalukkas Jewellery, said there are some natural short-term shifts in sentiment, but it’s important to look at the bigger picture.

“Gold purchases are tied to life’s meaningful moments for many nationalities, like weddings, anniversaries, celebrations, etc., and these emotions don’t pause for most. What we’re observing now is a more considered and deliberate buyer, rather than a decline. People are still investing in gold. They’re just taking slightly more time with their decisions,” he added.

Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, said the regional tensions have created a sense of uncertainty among consumers, resulting in softer sentiment and a subsequent decline in store footfall and jewellery sales.

“At the same time, we are observing a notable rise in demand for gold bars and coins. This was anticipated in the short term, with customers currently taking a cautious stance, choosing to postpone discretionary purchases until there is more clarity regarding the broader environment. However, we remain optimistic that overall sales will recover once the situation stabilises,” he said.

Not an essential commodity

Aditya Singh, head of international jewellery business at Titan Company, said jewellery is not considered an essential commodity during these uncertain times and daytime walk-ins have been relatively low.

“Several stores that remain open continue to see normal levels of activity, particularly during the evening hours and in mall locations. Overall, public confidence in the UAE’s safety and security measures remains strong, and malls across the country continue to operate normally,” he added.

Singh added that stores that are open have continued to conduct business as usual.“At this stage, there has not been a significant overall increase or decrease in jewellery sales compared with typical levels.”

Karim F Merchant, group CEO and managing director of Pure Gold Group, said uncertainties typically create short‐term caution among consumers, but the UAE market has demonstrated remarkable stability.

“This resilience is largely driven by the confidence of residents and visitors in the country’s strong economic fundamentals and safe‐haven status. Gold continues to be viewed not only as a cultural asset but also as a trusted store of value, which has helped cushion demand even during this period of heightened geopolitical tension,” he said.

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