UAE shoppers are picking up more gold bars - after Trump move

Dubai: Gold bars are trending in the UAE. At least that’s the vibe Dubai Gold Souq jewellery retailers were getting over the last two days based on what their shoppers are asking for.

“There wasn’t much interest in gold jewellery, even though there were still some promotions going on,” said a retailer. “This is understandable because the 22K gram was Dh379, just short off the Dh383.75 highest ever.

“Even then, we had a few shoppers asking about gold bars and those that fit into their budgets. A few bought 1-ounce bars costing over Dh12,000.

"I can't say President Trump's tariffs have made gold bars great again - they have always been popular with a certain type of shoppers. But right now, more UAE residents and visitors are looking at buying gold bars.

"Even at a time when a price like Dh379 would have meant low-to-zero demand."

The latest interest comes after US President’s new tariffs also targeted gold – specifically, 1-kilo gold bars from Switzerland.

This was the reason why gold prices blasted their way to near $3,400 an ounce levels. And why gold ‘futures’ for late 2025 deliveries hit their highest ever level of $3,534 an ounce. (The highest gold price to date is $3,500.)

The last Friday’s price surge also meant Dubai gold rate sped to Dh379 levels.

Buying gold bars (or shares in them through ‘fractional’ buying) has been immensely popular with UAE consumers/investors in the first six months of 2025, according to the World Gold Council data. “In fact, gold bars were the one category that actually saw growth during the period, while jewellery and gold coin sales fell,” said Andrew Naylor, Head of Middle East and Public Policy at WGC, in a recent briefing.

Now, Trump and US tariffs are ‘helping’ more UAE consumers take a closer look at gold bars.

“Not every UAE gold buyer will transfer to investing in digital gold,” said a retailer. “While they still prefer jewellery, some won’t mind taking an interest in gold bars. Especially as they have no VAT on them.”

No VAT is just part of what is making gold bars a huge hit with UAE shoppers. It is rated as one of the safest investments against inflation. They don't lose value on making charges when the investor decides to sell them at a later date. Also, smaller bars can be carried back by expats to their home countries without being bothered by customs authorities.

There too these bars can easily be sold on.

"Shoppers are keenly aware - more so than in the past - what they are paying on jewellery making charges," said a retailer. "For them, gold bars represent a major alternative.

"That's what has been happening in the last few months - Trump just gave the whole process another push."