The demand for gold jewellery in the UAE has taken a hit, declining by 14% in the fourth quarter of 2024, according to World Gold Council data. The drop is primarily attributed to two major factors: the surge in gold prices and India’s recent decision to reduce its gold import duty from 15% to 6%. In the fourth quarter of 2024, jewellery demand in the UAE fell to 8.8 tonnes, down from 10.3 tonnes in the same period the previous year. While demand for gold jewellery dwindled, the demand for gold bars and coins saw an increase as investors sought refuge in the precious metal amidst rising prices. The surge in gold prices was fueled by strong central bank demand, lower interest rates, and geopolitical uncertainties, including U.S. President Donald Trump’s policies.
Gold prices reached the historic highs, with 24K and 22K gold trading at Dh344 and Dh320.25 per gram, respectively, in Dubai. Despite this, demand from consumers overall decreased by 8%, reflecting the broader global trend. Per-capita gold demand in the UAE also fell to 4.36 grams in 2024 from 4.8 grams in 2023. While the global consumption of gold jewellery dropped by 11% in 2024, diamond sales seem to have remained steady for some businesses, with a continued focus on alternative investments.
