UAE gold prices up 44%: Retailers share secret shopping hacks that save money

Dubai: Gold shoppers across the UAE are adapting their purchasing strategies as prices soar 43.6 per cent this year, with 24-karat gold trading at Dh453.25 per gram today - down 50 fils from yesterday’s Dh453.50, while 22-karat gold stands at Dh419.50, down from Dh420.

Still, this represents a dramatic increase from Dh315.58 per gram in September 2024. Despite the significant price surge, retailers are reporting steady demand as customers employ tactical buying strategies and prioritise quality over quantity.

UAE gold buyers have become increasingly price-conscious, monitoring daily rates and capitalising on small market corrections as prices have surged 43.6 per cent since September 2024, according to Chirag Vora, Managing Director of Bafleh Jewellers.

"More price-sensitive, tactical customers are monitoring rates and buying at small dips of 1-2 per cent corrections," Vora said. "We see footfall spike on days when prices are softer, or if there is a making-charge promotion." Customers are also locking in rates by placing deposits of 15-20 per cent for custom pieces, demonstrating a strategic approach to managing price volatility.

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

The 25-40 age group has emerged as the most dynamic segment, with younger investors showing particular interest in gold as a safe-haven asset.

"There’s a visible rise in interest from millennials and Gen Z, who see gold as a safe asset," says Vinay Jethwani, Partner at Meena Jewellers. "At the same time, traditional buyers continue to drive festive and wedding-related purchases."

Meanwhile, Shamlal Ahamed, MD of International Operations at Malabar Gold and Diamonds, said, “Millennials and Gen Z buyers are more open to gold as an investment class, often starting with coins, bars or savings schemes before progressing to fine jewellery.”

Retailers are also reporting a significant shift in buying patterns, with customers prioritising fewer, higher-quality pieces over multiple lighter items.

"Average ticket sizes have risen, but customers are opting for fewer pieces — focusing on quality, design, and investment value rather than quantity," Jethwani said.

Vora added, “Customers are opting for higher-quality selections. They choose timeless, low-making charge designs, certified diamonds or premium construction of one or two hero pieces rather than multiple smaller items.”

Moreover, gold savings schemes and structured payment plans are gaining popularity as customers seek ways to manage rising prices.

“We have witnessed a noticeable rise in the uptake of installment plans and gold savings schemes," says Ahamed. “Customers are becoming more financially savvy and many prefer structured, flexible options.”

Meanwhile, a spokesperson for Joy Alukkas highlighted their Jewellery Purchase Programme: “Customers can plan their purchases through easy monthly installments starting from just Dh200, making buying jewellery more accessible and budget-friendly.”

The company has rolled out an advance programme, valid until 19th October, allowing customers to lock in current gold rates with just 10 per cent upfront payment, protecting them against further price increases.

Retailers are also responding to price sensitivity with innovative design solutions.

"Demand for modular bangles, adjustable chains, and stackable rings are becoming more popular as people build their collections over time," said Vora.

Customers are also switching to "lighter/heavier designs, or hollow/laser cut patterns to keep a budget in check without sacrificing look."

Global market analyst Carsten Menke, Head of Next Generation Research at Julius Baer, said, "The gold and silver markets have shifted up a gear following the US Federal Reserve’s interest rate cut. Expectations of further rate cuts have turned into a key driver of price performance."

Menke notes strong investor appetite globally: "For gold, inflows amount to around 400 tonnes year to date, which puts 2025 on track for the best year since 2020."

Central banks are also driving demand: "Reserve additions reached more than 70 tonnes in July, bringing the year-to-date total to around 420 tonnes,” said Menke.

Despite price pressures, the emotional and cultural significance of gold continues to drive purchases, particularly during the upcoming festive season.

"Gold is as much about emotion and tradition as it is about investment," explained Jethwani. "While some buyers wait for a dip, most continue to purchase."

International visitors to the UAE have also adjusted their approach, becoming more price-comparison savvy while maintaining interest in gold purchases.

Vora said that tourists remain "important, but more price comparison savvy" in their purchasing decisions. The market shows a clear divide between investment-focused buyers and traditional jewellery purchasers.

"Investment buyers are still active and generally still buy—just in smaller chunks to average rather than going all in at once," Vora said.

Meanwhile, traditional buyers aged 40-55 are "less likely to defer any significant cultural purchase, while they may reduce weight or simplify design." For now, the market appears set to continue its upward trajectory.