UAE Gold Demand Slumps Amid High Prices as Investments Soar

The World Gold Council has reported that gold jewellery demand in the UAE will likely remain under pressure during the next half of the year, while geopolitical uncertainty and inflation concerns will continue to support demand in bars and coins.

Jewellery demand fell to its lowest quarterly volume since the pandemic at 278 tonnes, as high gold prices and broader inflationary pressures constrained affordability. Spending on gold jewellery increased 14 per cent year-on-year to $40 billion.

In contrast, investment demand in the region proved more resilient, with bar and coin investment rising 30 per cent year-on-year during the second quarter, benefiting from safe-haven demand as well as India's higher import duty, which made buying gold in the UAE relatively more attractive.