Gold Demand Tumbles in UAE Amid Middle East Conflict

The UAE saw a significant drop in gold jewellery demand due to regional geopolitical tensions and lower tourist interest. According to World Gold Council data, gold jewellery sales fell by 28% year-over-year to 5.6 tonnes in Q2 2026 compared to 7.7 tonnes during the same period last year.

However, a closer look at the numbers shows that demand for gold jewellery actually rose 21.7% quarter-on-quarter due to record high prices in January causing a pullback from precious metal purchases.

On the other hand, gold bars and coins bucked this trend with demand increasing by 30% year-over-year to 5.3 tonnes during Q2 2026. Quarter-on-quarter demand for these investment products jumped 32.5%, suggesting that investors remain attracted to gold as a safe-haven asset.

Simon-Peter Massabni, head of business development at xs.com, believes that the current market conditions are supportive of gold's bullish trend over the medium and long term. He notes that gold is entering a pivotal phase that could shape its trajectory over the coming years and warns investors not to underestimate the strength of the broader uptrend.