UAE Gold Buying Continues They have only just moved from jewellery into bars and coins. That’s the big story from the World Gold Council’s second quarter 2026 data released this week. Demand for gold bars and coins jumped 30 per cent in the same period while gold jewellery demand collapsed 28 per cent year-on-year. Regional conflict, high prices and fewer tourists are all reshaping gold buying habits right now.
Jewellery Demand Fell Hard
In the UAE, demand for gold jewellery fell from 7.7 tonnes in Q2 2025 to just 5.6 tonnes in Q2 2026. That is a 28 percent drop year on year and it is a big number. It was driven by two things. First, tourists were spooked by regional geopolitical tension from the US-Iran conflict and tourists are a major driver of gold jewellery sales in the UAE, especially in Dubai’s famous gold souks. Second, throughout 2026, gold prices have been high, which has always led buyers to either hold back or downsize their purchases. Gold’s all-time high was $5,589.38 per ounce on Jan. 28, 2026. That day alone saw prices surge more than $300 in one trading session, driven by rising US-Iran tension. When the price is that volatile, buying a gold necklace or bracelet seems riskier than usual. They waited. The good news is that jewellery demand actually increased 21.7 per cent quarter-on-quarter, indicating some recovery as the year went on and prices stabilised a bit. Planning a shopping trip to browse jewellery or other retail in Dubai? Check out the best Shopping Malls In Dubai for the top destinations across the city.
Bars and Coins Told a Different Story
Jewellery struggled but gold bars and coins in the UAE had a very strong quarter. Demand went up by 30 per cent year-on-year to 5.3 tonnes in Q2 2026 from 4.1 tonnes in Q2 2025. Demand for bars and coins jumped 32.5pc in the quarter-on-quarter comparison. That makes sense. When geopolitics get shaky and the markets get choppy, people don’t stop buying gold. They just purchase it differently. Jewellery is a luxury buy. Gold bars and coins are a matter of finance. People buy them to hold them as a store of value , a hedge against inflation , or a safe asset that can be sold or used as collateral when needed . Physical gold has a strong cultural heritage in the UAE, particularly among the South Asian, Arab and other expatriate communities, who have a generational tradition of buying gold for weddings, festivals and as family savings. The cultural draw to gold did not disappear. It just went from ornamental to investment form. When making investment decisions, it’s important to keep your finances in order. Want to verify your account balance ahead of a major purchase? Get a fast FAB Balance Check Online without going to a branch.
Where is gold price now?
Gold has tumbled from its January peak. Spot gold was trading at $4,026 per ounce on Monday August 4, down 1.24 per cent on the day. At the market opening, 24K gold was being traded at Dh488.25 per gram and 22K at Dh452.0 per gram in UAE dirham terms. Still a historically high price but some $1,500 off the record set in January. Rising oil prices feeding US inflation concerns pushed the dollar stronger and weighed on gold, partly driving the drop. US interest rates are also higher , making gold less attractive versus bonds , which pay a yield . But analysts say the longer-term picture for gold remains bullish despite the current dip.
What a Pro Tells You
Simon-Peter Massabni, head of business development at xs.com, said the outlook for gold will remain closely tied to US inflation, US monetary policy, the dollar’s direction and real bond yields. He believes the bigger risk for investors right now is to underestimate the strength of the longer-term uptrend due to short-term price drops. “If the supportive fundamentals stay in place, new all-time highs cannot be ruled out,” he said. “Chasing gold higher at every rally is not the smart way to go,” he added. The better idea, he said, is to wait for consolidation periods and re-entry points, and use technical levels to manage risk. “Gold is moving into a critical phase,” Massabni said. But if this decline is just a correction in a longer bull cycle, prices today could one day look like a bargain accumulation period before another big advance. “I don’t see the story of gold as being over,” he said. Instead, he views it as an asset with strong structural drivers for further gains. Thinking about opening a new bank account or transferring your existing one to better manage your investments in gold? Read the full guide to Banks in Dubai to find the best option for you.
What This Means for Buyers in UAE
The current price environment is more accessible if you have been thinking of buying gold jewellery than it was in January. Prices are lower than their peaks and the demand data shows the market hasn’t fully rebounded from the regional disruptions, meaning there is less competition from other buyers than usual. The strong Q2 demand data suggests that this community is already active and buying at current levels for investment buyers looking at bars and coins. Analyst sentiment is that the gold isn’t over yet. The long-term structural story around inflation, geopolitical uncertainty and global central bank buying is still intact, whether the next move is up or sideways in the short term. UAE gold market to recover as regional tensions ease, tourism returns The move from jewellery to investment gold is likely to continue until then.
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