Should you buy gold in 2026? Dubai retailers say demand will stay strong

Dubai: Gold retailers in the UAE are heading into 2026 by balancing record-high prices with steady consumer demand and a long-held belief in gold’s role as both a store of value and a cultural constant. (Check latest UAE gold prices here, alongside prices in Saudi Arabia, Oman, Qatar, Bahrain, Kuwait, and India.)

After posting its strongest annual performance since 1979, gold enters the new year with momentum built on central bank buying, strong inflows into bullion-backed exchange-traded funds and a supportive interest rate environment following three successive cuts by the US Federal Reserve. For retailers, however, the focus is less on predicting price levels and more on how buyers respond to elevated prices and shifting global conditions.

John Paul Alukkas, Managing Director of Joyalukkas International operations, said the long-term case for gold remains firmly in place despite the likelihood of short-term swings.

“Our outlook for gold in 2026 remains fundamentally positive, with its underlying structural strength firmly intact,” he said.

He added that while price fluctuations are inevitable, the forces supporting gold have not changed. Global economic uncertainty and the role of gold in long-term asset allocation continue to provide a strong foundation for investor and consumer confidence, particularly in markets where jewellery buying is both financial and emotional.

Shamlal Ahamed, MD-International Operations of Malabar Gold & Diamonds echoed this sentiment. "Gold is expected to remain structurally strong through 2026, underpinned by its proven role as a hedge against inflation, currency volatility and geopolitical uncertainty," he said. "While short-term price fluctuations are inevitable, consumers are increasingly viewing gold through a long-term lens, recognising its historically upward trajectory and its continued potential for sustained growth."

Retailers acknowledge that higher prices demand a more informed approach from consumers. Alukkas pointed to interest rate movements, currency trends and geopolitical developments as key factors that could influence prices through the year.

“Movements in interest rates and the US dollar traditionally have an inverse relationship with gold prices,” he said. “Short-term volatility and market corrections are always possible, and shifts in geopolitical risk sentiment can drive safe-haven demand but also add unpredictability.”

That said, he stressed that smaller purchases do not require deep analysis. For many buyers, gold remains a dependable form of savings over time, even when bought in modest quantities.

From a retail perspective, demand patterns appear resilient, particularly for well-crafted jewellery. Anil Dhanak, Managing Director of Kanz Jewels, said forecasting prices is less relevant for jewellers focused on design and customer value.

He noted that today’s buyers are more informed and deliberate, arriving with clear objectives whether they are purchasing for personal use, gifting or long-term value. This maturity has helped steady demand even during volatile periods.

While silver has enjoyed a strong rally, retailers see clear differences between the two metals. Alukkas described silver as more volatile due to its exposure to industrial demand, while gold continues to offer greater stability during periods of uncertainty.

“Gold is generally considered a stronger hedge and offers greater stability,” he said, adding that a balanced exposure to both metals may suit some buyers better than choosing one exclusively.

Dhanak echoed that view but said gold is likely to remain the preferred choice for jewellery buyers and long-term holders. Silver may attract investors looking for a lower entry price, but gold’s cultural relevance, stability and universal acceptance continue to set it apart.

“In 2026, gold is likely to remain the first preference for those looking at both emotional and intrinsic value,” he said.

Retailers agree that volatility may affect sentiment at times, but not the underlying appeal of gold.