Gold Prices Dip After Hitting Record Highs in UAE

If you’ve been eyeing that sparkly gold bracelet but holding off, you’re not alone. After hitting an all-time high of Dh420 per gram on Tuesday, gold prices in the UAE took a dip on Wednesday morning—falling below Dh400 per gram. Still, many shoppers are treading carefully with their wallets.

While some residents are cashing in by selling their old jewelry, others are simply pressing pause on new purchases. Gold remains a top-tier investment option, but people are playing it smart with their spending.

“Many are exchanging their old pieces for newer designs, while others are using it as an opportunity to lock in the current gold rate before prices potentially rise further,” said Joy Alukkas, chairman of Joyalukkas Group.

According to Alukkas, the volume of gold jewelry purchases has slightly dipped, but not dramatically. Instead, buyers are pivoting to smaller, more budget-friendly pieces—think dainty chains, slim bangles, and gold coins for investment.

Here’s where prices stood on Wednesday morning in Dubai:

• 24K: Dh399.5 per gram (down from Dh420)

• 22K: Dh370.0 per gram

• 21K: Dh354.75 per gram

• 18K: Dh304.0 per gram

Globally, gold was trading at $3,322.44 per ounce, marking a 2.5% drop from Tuesday’s temporary high of $3,500.

“While the higher prices may have led to a slight reduction in the volume of gold jewellery purchases, it has not been significant enough to cause a drastic drop,” said Alukkas. “We continue to see positive trends in sales, thanks to our attractive offers and innovative designs that meet the current market demand.”

Shamlal Ahamed, Managing Director for International Operations at Malabar Gold and Diamonds, echoed this: “There’s a small slowdown in spending, but it’s temporary. Consumers are adjusting to the price range—and they’re not letting go of their gold assets just yet.”

In short: gold is still gold. Even with the price rollercoaster, shoppers in the UAE continue to see it as a safe-haven investment, especially for weddings, celebrations, and long-term wealth building.

So whether you’re thinking of selling, swapping, or just browsing—you might want to watch the market a little longer. Or hey, maybe it's finally time to treat yourself?

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