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Gold jewellery sales and store footfall have rebounded strongly across the UAE as declining gold prices boost consumer demand.

Jewellers say buyers are saving up to Dh1,000 on a 10-gram purchase after prices fell more than Dh100 per gram in March, driven by a decline in global rates amid the Middle East conflict that began on February 28.

The 24K gold price had reached a record Dh666 per gram in late January. On Wednesday, it was trading at Dh553.75 per gram, down nearly Dh112.

Globally, spot gold stood at $4,542 per ounce, up 3.2 per cent, at noon on Wednesday.

Despite a slight rebound midweek, prices remain significantly below their recent peak.

According to Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, the price correction has boosted consumer sentiment.

“The sharp drop in gold prices has created a strong buying opportunity, driving higher footfall and sales,” he said.

Shamlal Ahamed

He added that customers are increasingly using advance payment schemes to lock in rates.

“If prices fall, customers benefit from the lower rate; if they rise, they retain the locked price,” he said, referring to the company’s 10 per cent advance scheme and longer-term options.

Bigger purchases, stronger demand

Chirag Vora, managing director of Bafleh Jewellers, said hesitant buyers are now entering the market with confidence.

“There is a clear shift towards larger, bolder jewellery pieces that were previously seen as expensive,” he said.

Chirag Vora

He added that the price drop, combined with Eid gifting demand, has created a “perfect storm” for sales.

“Footfall has increased significantly compared to pre-drop levels, and sales during Eid have exceeded initial projections. Savings of up to Dh1,000 on a 10-gram purchase are also pushing up average basket sizes,” he said.

Eid boosts momentum

Anil Dhanak, managing director at Kanz Jewels, said buyers are making quicker decisions as prices soften.

“Recent rains have slightly impacted store visits, but demand is expected to rebound strongly,” he said.

Anil Dhanak

He added that the timing of the price drop has further accelerated Eid shopping.

“Customers are buying for Eid while also planning ahead for weddings and future events,” he said.

John Paul Alukkas, CEO of Joyalukkas Jewellery, said the correction has revived market activity.

“Customers who were waiting for the right entry point are now buying with confidence, both for weddings and investment,” he said.

John Paul

He added that Eid demand and favourable pricing have created strong sales momentum.

“We are seeing a clear rise in footfall and sales compared to both recent weeks and the same period last year,” he said. 

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