Demand for 22K and 24K gold and jewellery rebounds in UAE as prices drop by over Dh100

Demand for 24K gold for investment and 22K jewellery in the UAE has rebounded following a drop in prices over the past few weeks, according to jewellers.

In the UAE, 24K and 22K gold prices were trading at Dh541.25 and Dh501.25 per gram, respectively, on Sunday. Prices have fallen by more than Dh100 per gram over the past month due to a decline in global rates.

Demand for 22K gold jewellery had taken a hit after precious metal prices reached record highs, as shoppers shifted to lightweight ornaments.

Record-high gold prices had made it unaffordable for some residents to purchase the precious metal for investment.

Globally, spot gold closed at $4,493.79 per ounce, up 2.53 per cent. Prices have retreated from their peak of over $5,500 due to the strengthening of the US dollar and a rise in oil prices, which has fuelled inflation in the US, prompting the Federal Reserve to hold off on hiking interest rates.

“We are seeing robust yet distinct demand spikes across both purity levels. Demand for 24K gold bars and coins has surged among investment-minded buyers who view the current price as an attractive entry point. On the jewellery side, 22K pieces are seeing strong demand, particularly for traditional and bridal designs, as customers look to lock in value while prices remain at this level,” said Chirag Vora, managing director of Bafleh Jewellers.

“Interestingly, we are also seeing younger, first-time buyers entering the market, which is a very encouraging sign for the long-term health of the gold retail sector in the UAE,” he added.

More focus on investments

Anil Dhanak, managing director of Kanz Jewels, also sees a clear shift towards value-driven buying, with customers either opting for heavier jewellery or balancing their spending between jewellery and investment gold.

“We are witnessing a stronger surge in demand for 24K gold compared to 22K jewellery following the price correction. Customers are clearly treating this as a strategic buying opportunity, resulting in higher demand for gold coins and bars.”

Dhanak added that while 22K jewellery continues to see steady festive demand, the current trend reflects a more investment-focused mindset among buyers, with many looking to capitalise on the lower price point.

“As footfall improves after the rains, we expect this investment-driven demand to gain further momentum,” he added.

Thoughtful buying

According to John Paul Alukkas, CEO of Joyalukkas Jewellery, customers are not just buying, but buying thoughtfully, with many opting for a mix of investment-grade pieces and beautifully crafted jewellery that reflects both tradition and modern sensibility.

“Both 24K and 22K categories have seen meaningful increases, though for different reasons. Demand for 24K gold – particularly coins, bars and investment-grade pieces – has risen sharply as customers recognise the value opportunity in the current market. Many are choosing to diversify their holdings or add to their long-term savings through gold.

“On the jewellery side, 22K remains the preferred choice for traditional and bridal purchases, and we have seen strong demand across our collections. Customers are gravitating towards designs that offer both beauty and lasting value,” Alukkas told Khaleej Times.

He added that the drop in gold prices has made these pieces more accessible, encouraging customers to move forward with purchases that were already on their minds. “It is a very positive response, and we are pleased to see such enthusiasm across both investment and adornment categories,” he said.

Shamlal Ahamed, managing director of international operations at Malabar Gold and Diamonds, said customers are viewing this price correction as an opportune moment to buy, leading to a noticeable increase in both footfall and overall sales during the long Eid holidays.

“In addition to jewellery, there has also been heightened interest in investment-oriented products such as gold coins and gold bars, as customers look to capitalise on the lower price point. Consumers are increasingly balancing both adornment and investment needs, taking advantage of favourable pricing to maximise value,” he added.