UAE jewellery demand slips 18% as gold soars

UAE gold jewellery demand plunged 18 per cent to 7.9 tonnes in the first quarter of 2025, compared to 9.6 tonnes during the same period last year, as high precious metal prices weighed on consumer appetite.

- Waheed Abbas

Gold prices have been continuously rising over the past few quarters, reaching a record high last month when it touched $3,500 per ounce globally and Dh420 per gram in Dubai.

In addition to high prices, India’s decision to cut import duty also impacted gold jewellery sales as Indian residents and tourists account for a good chunk of sales in UAE.

Many residents sold their precious metal ornaments to take advantage of record high prices. Also, many residents switched to cheaper variants such as 18 carats due to affordability.