At Dubai’s Gold Souq, shoppers trade weight for sparkle

Dubai: Gold has touched record highs 40 times this year, yet UAE shoppers haven’t stepped back. Despite prices testing new limits almost every week, buyers continue to walk into jewellery stores, drawn by tradition, investment value, and the upcoming festive season. The Gulf News team spoke to retailers to understand what’s keeping demand alive in one of Dubai’s most resilient markets.

(Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait and India.) 

Jewellers say the price surge has changed how people buy, not whether they buy. “If people used to buy jewellery for Dh10,000 last year, they are also spending Dh10,000 now, but they will be getting much lesser weight compared to last year,” said Arjun Dhanak, Director at Kanz Jewels. He added that ahead of Diwali, gifting demand remains strong, even if buyers are choosing smaller, lighter pieces.

Viraj Shah, General Manager at Bafleh Jewellery, noted that the preference for lightweight designs has deepened. “The Italian designs that come in as little as half a gram to five grams can give you the same look and feel. So lightweight is definitely for the next generation,” he said.

Analysts say that even with gold hovering near record highs of around $3,980 an ounce, the local market’s depth ensures steady footfall. This year, the weight of gold may be lighter in the bags, but for many UAE buyers, the sentiment and the sparkle remain just as strong.