UAE Gold jewelery demand dropped by 28% during the second quarter. This comes after rising conflicts in the Middle East and high gold prices. Thus, discouraging consumers from making discretionary purchases. This reflects the trend where geopolitical uncertainty weakened retail activity and prompted buyers to delay non-essential spending.
The record-high price of gold acted as a deterrent to jewelry purchases. Buyers tried to defer their purchases or chose smaller items in order to cope with the increasing expenses. While there were fewer consumers buying gold jewelry, the total value of transactions was stable.
The UAE's performance mirrors developments across the Middle East, where conflict weighed on consumer confidence and discretionary spending. Retailers have since witnessed continued caution, with many delaying purchases until price stability returns.
Industry observers expect jewelry demand to remain under pressure if geopolitical risks persist and gold prices stay elevated. However, investment demand could remain strong as uncertainty continues to support gold's safe-haven appeal. Future recovery in jewelry sales will largely depend on easing regional tensions, improved consumer confidence, and greater price stability in global bullion markets.
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