As a result of increased global gold prices and economic uncertainties, UAE consumers are spending less on gold jewelry and more on gold bars and coins. The demand for gold jewelry in the United Arab Emirates decreased by 16% year over year to 7.7 tonnes in Q2 2025 from 9.2 tonnes in the same period the previous year, according to the most recent statistics from the World Gold Council. This is the second straight quarter that jewelry consumption has decreased.
On the other hand, demand for gold coins and bars increased dramatically, increasing by 25% year over year to 4.1 tonnes in Q2 2025 from 3.3 tonnes in Q2 2024. Demand increased 31% every quarter, indicating a rising desire for tangible gold assets.
The UAE’s total gold consumption dropped 5% year over year to 11.8 tons in the second quarter, despite the increase in investment demand. That being said, it nevertheless showed a 7.2% gain over the prior quarter.
Due in major part to growing worldwide prices, gold prices in the United Arab Emirates have increased by almost Dh100 per gram over the past year, as previously reported by Khaleej Times. Trade tariffs, growing geopolitical concerns, and central banks’ continuous purchases have all contributed to this spike.
Gold prices were high throughout the second quarter, with 24K gold continuously trading over Dh400 per gram. The price of 24K gold in Dubai as of Thursday morning was Dh397.5 per gram.
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