Gold investment demand in the UAE rose sharply during the second quarter of 2026. This comes as investors increased purchases of physical bullion amid increased economic and geopolitical uncertainty.
The increase was driven primarily by stronger demand for gold bars and coins. Investors continued to view physical gold as a hedge against market volatility, inflation and geopolitical risks. The rise came despite gold prices remaining at elevated levels.
According to the World Gold Council (WGC), investment demand in the UAE rose 30% year-on-year in Q2. Total UAE gold demand, including jewellery, bars and coins, rose from 8.7 tonnes in the first quarter to 10.9 tonnes in the second quarter of 2026.
Instead of considering gold exclusively as an adornment, investors and consumers are now viewing it as an investment. The WGC said UAE bar and coin demand benefited from safe-haven buying and the sharp rise in gold prices. The move also mimics trends in developments across several Asian markets, where retail investors have increased allocations to physical gold.
Investors' inclination towards gold investments increased amidst uncertainty over interest rates, currencies and economic performance around the world. The metal's traditional role as a valuable asset ensured demand despite increased prices. Thus, it is difficult for people to buy jewelry.
The high cost of gold has compelled buyers to think twice before buying, and many have opted for lightweight items instead. Q2 2026 saw UAE jewellery demand decline by 28% from the same quarter last year to 5.6 tonnes from 7.7 tonnes, according to WGC statistics cited by Khaleej Times.
At the global level, too, jewellery demand declined sharply. Global jewellery demand fell to 278 tonnes in Q2. The divergence between jewellery and investment demand highlights the changing dynamics of the UAE gold market. Consumers facing record prices are cutting back on jewellery volumes, while investors remain willing to buy gold for portfolio protection.
Also Read: Dubai Gold Price: 24K Falls to AED 529.75 Per Gram