UAE residents avoid gold rush with smart shopping after prices hit three-month high

UAE residents are exercising caution amid a surge in gold prices, which have reached a three-month high. Experts advise customers to monitor price fluctuations closely and invest in smaller pieces of jewellery and coins rather than delaying purchases. Gold prices spiked upon opening on Monday at Dh559.50 per gram, but have stabilized after four days of consecutive rises.

Anil Dhanak, managing director of Kanz Jewels, notes that while demand remains strong, customers are becoming more budget-conscious. Retailers attribute the trend to global economic uncertainty, expectations of interest rate cuts, a weaker US dollar, and continued demand for gold as a safe-haven asset. Central bank purchases are also contributing to the bullish sentiment.

Despite higher prices, consumers are still engaged with the market but are being more selective about the quantity, product type, and budget of their purchases. Buyers are opting for lightweight daily-wear jewellery and investing in coins and bars for saving and gifting. The shift in consumer behavior indicates a more strategic approach to gold purchases.

Malabar Gold and Diamonds offers a scheme allowing customers to pay a portion upfront to lock in current rates for future purchases, helping them manage price swings. Gold continues to be viewed as a long-term store of value, which sustains buying intent even during periods of price volatility.