UAE sees drop in gold jewellery demand due to high prices
The fourth quarter of 2024 saw gold jewellery demand in the UAE decrease by 14 per cent because gold prices remained high and India reduced its gold import duty from 15 per cent to 6 per cent.
According to the World Gold Council data jewellery demand dropped to 8.8 tonnes in the last year's fourth quarter compared to 10.3 tonnes in the same quarter of the preceding year.
Gold bar and coin demand grew from 3.1 to 3.4 tonnes during the period because investors took advantage of increasing gold prices.
The prices of precious metals have experienced a steady rise across recent quarters because central banks show strong demand while interest rates decrease and concerns about US President Donald Trump’s tariff policies persist.
On Wednesday gold prices reached an unprecedented level of $2,854 for each ounce. Gold prices in Dubai reached historical peaks when 24K gold sold at Dh344 per gram and 22K gold sold at Dh320.25 per gram during Wednesday's market opening.
Consumer demand for gold decreased by eight per cent going from 13.3 tonnes in Q4 2024 to 12.2 tonnes in Q4 2025.
The UAE saw a decline in per-capita consumer demand for gold to 4.36g in 2024 from 4.8g in 2023 and 5.38g in 2022.
The managing director of Liali Jewellery, Anuraag Sinha, stated that the sales of gold jewellery declined because prices reached unprecedented levels.
The global consumption of gold jewellery decreased by 11 per cent in 2024 while Indian and Chinese markets saw declines of six per cent and 27 per cent, respectively. Diamond-focused companies probably experienced minimal effects from this pattern according to Sinha.
‘$3,000 looks like an easy target’
Senior analyst Ipek Ozkardeskaya from Swissquote Bank observed that although investors seem to be more relaxed today compared to the beginning of the week, safe havens maintain rising demand because of mounting global uncertainties under Trump’s leadership.
“There is not a better hedge than gold for protecting a portfolio from Trump worries: Gold remains the optimal protective asset against Trump-related portfolio concerns because central banks ramp up their demand to lessen US exposure when Trump generates chaotic international relations. The price of gold reached $2,860 per ounce during the fourth consecutive session and set a new high for Asian markets. Ozkardeskaya observed that Trump's trajectory suggests reaching $3,000 will be straightforward.
The World Gold Council reported an 11 per cent decline in global gold jewellery consumption due to record high prices while bar and coin demand remained unchanged from 2023 levels.
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