Gold and jewellery shoppers are taking advantage of the drop in precious metal prices in Dubai and the UAE, leading to long-planned wedding and investment-driven buying as gold prices continue to remain under pressure.
The 22K gold jewellery market in Dubai is the clear beneficiary of the price correction, as many shoppers who postponed purchases during the high-prices period are returning to the market.
The 24K gold price in Dubai has dropped by around Dh47 per gram while 22K has lost approximately Dh43 per gram in the past one month due to higher oil prices, rising inflation in the US, and geopolitical tension in the region.
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The 24K and 22K gold prices closed at Dh521.5 and Dh482.75 per gram, respectively, in Dubai on Monday.
“A price reduction like this encourages customers who had been monitoring the market to make informed purchasing decisions. We have seen a marked increase in footfall, and importantly, customer interactions are converting into purchases at a notably faster rate than in preceding months. Families are finalising long-planned bridal orders, and investment-driven purchases are seeing a strong uptick,” said John Paul Alukkas, CEO of Joyalukkas Jewellery.
“Key occasions such as weddings, anniversaries, and personal celebrations are being planned with renewed confidence. The price correction has not introduced uncertainty; rather, it has provided clarity and conviction,” he added.
Anil Dhanak, Managing Director of Kanz Jewels, said there is a noticeable increase in showroom enquiries and footfall, especially from residents and tourists who were waiting for prices to soften before making their purchases.
Echoing his industry peers, Shamlal Ahamed, Managing Director for International Operations at Malabar Gold and Diamonds, said there is particularly strong traction from value-conscious customers who view this dip as the right moment to buy.
“It’s a temporary phase, as historically the long-term trend for gold prices has always been upward. The softer prices have also encouraged higher demand for 22K gold jewellery, especially in lightweight and versatile designs that offer both value and wearability. Many shoppers are taking advantage of the opportunity to upgrade, purchase gifts, or invest in staple pieces,” he said, adding that shoppers are responding quickly to the price advantage, turning this short-term dip into a strong buying window.
According to Chirag Vora, Managing Director of Bafleh Jewellers, some consumers – particularly those with immediate purchasing needs – have seized the opportunity to buy at more attractive rates.
Strong uptick in 22K gold jewellery buying
Vora confirmed demand for 22K gold jewellery is rising faster than other variants due to the recent drop in prices.
“22K gold has become the clear preference in recent weeks, especially among South Asian and Arab customers who traditionally favour higher purity for both adornment and investment purposes. 18K also continues to hold steady among younger buyers and European tourists who prioritise design intricacy and durability over pure gold content.”
Anil Dhanak said consumers now find 22K gold jewellery more affordable to buy.
“Many customers who had postponed purchases during the peak price period are now returning to the market to take advantage of the lower rates. In Dubai, gold is not only seen as an ornament but also as a long-term investment and gifting option. Whenever prices correct significantly, shoppers tend to increase their buying volumes. We are also seeing customers upgrading to heavier jewellery designs and wedding collections due to improved affordability,” he added.
John Alukkas noted that 22K shoppers who may have previously considered lighter pieces or lower-karat jewellery due to high prices are now confidently opting for 22K jewellery, as the overall investment feels more within reach.
