Gold prices jump Dh21 per gram on Thursday, prompting UAE shoppers to shift from traditional jewellery to gold coins and bars as safer investment options.
UAE shoppers are increasingly dividing their spending between gold jewellery and investment options such as bars and coins, reflecting a more value-conscious approach among consumers, according to Dubai jewellers.
Industry executives said some customers are moving away from larger jewellery purchases and opting for lighter, more affordable ornaments amid changing buying patterns.
Gold prices climbed by more than Dh21 per gram on Thursday, hitting a seven-week peak as optimism grew over the reopening of the Strait of Hormuz.
Spot gold was trading at $4,253 per ounce on Thursday morning. In Dubai, 24K and 22K gold prices stood at Dh513.75 and Dh475.75 per gram, respectively.
John Paul Alukkas, CEO of Joyalukkas Jewellery, said consumers are now approaching gold purchases with greater planning and financial awareness.
“Buyers increasingly see coins and bars as a simple and cost-efficient way to invest in gold, as they avoid the making charges and design premiums associated with jewellery. Many customers are also dividing their purchases — choosing jewellery for occasions such as weddings while adding coins or bars as a form of long-term savings. This reflects a more balanced approach to gold ownership. Although jewellery demand has softened in the short term, it indicates a change in purchasing behaviour rather than reduced interest in gold,” he said.
Alukkas also highlighted a growing preference among customers for certified and responsibly sourced gold and diamonds.
Data from the World Gold Council for the second quarter of 2026 showed that gold jewellery demand declined by 28 per cent year-on-year, while demand for gold bars and coins increased by 30 per cent.
“The World Gold Council’s figures reflect the broader market trend, although our retail performance has remained relatively resilient. Rising gold prices have made some consumers more cautious, particularly in jewellery segments. At the same time, interest in gold coins and bars has increased as buyers view them as safe-haven assets and a protection against economic uncertainty,” Alukkas added.
Value-conscious buying trends
Anil Dhanak, managing director of Kanz Jewels, said customers are becoming increasingly focused on value when making gold purchases.
“Many buyers are choosing lightweight and modern jewellery designs, while some are purchasing bullion first and delaying larger jewellery purchases. Buying decisions are also closely tied to price movements. When prices rise, customers often buy sooner in anticipation of further increases. When prices decline, many prefer to wait, hoping for better rates before making a purchase,” he said.
Shamlal Ahamed, managing director of international operations at Malabar Gold & Diamonds, said some customers are adopting a more cautious, wait-and-watch strategy, especially for heavier and non-essential jewellery purchases due to ongoing fluctuations in gold prices.
“At the same time, the rising demand for gold coins and bars highlights a growing preference for gold as an investment asset and a store of value. However, jewellery remains the preferred choice for personal styling, gifting, and marking important milestones,” he said.
Ahamed added that investment-driven purchases are gaining momentum, with gold coins and bars becoming increasingly popular among first-time investors. He also noted a rise in customers exchanging old jewellery for new pieces.
“Millennials and Gen Z consumers are increasingly drawn to minimalist jewellery, stackable designs, and everyday pieces that offer a blend of style, practicality, and long-term value,” he said.
Chirag Vora, managing director of Bafleh Jewellers, said the gold market is currently reflecting two distinct consumer trends.
“Investment-oriented buyers are increasing their purchases of gold coins and bars as a safeguard against global uncertainty, while jewellery shoppers are becoming more selective due to higher gold prices. Rather than abandoning purchases, many customers are adjusting their budgets by choosing lighter designs, exchanging old jewellery, or buying pieces for specific occasions instead of making larger discretionary purchases,” he added.
