Gold purchases in the United Arab Emirates surged by 25.3% in the second quarter of 2026 compared to the previous quarter, amounting to 10.9 tonnes. This remarkable increase is primarily attributed to heightened consumer interest in gold bars and coins, with many looking to the precious metal as a viable investment option amid fluctuating economic conditions.
According to the latest data from the World Gold Council, the total demand for gold in the UAE—which includes jewellery, bars, and coins—rose significantly from 8.7 tonnes in Q1 to 10.9 tonnes in Q2. The demand for gold bars and coins experienced the most substantial growth, soaring by 32.5% quarter-on-quarter to reach 5.3 tonnes. In contrast, jewellery purchases also saw an uptick, but at a slower rate of 19.1%, rising from 4.7 tonnes to 5.6 tonnes during the same period.
However, despite the impressive figures for Q2, gold demand throughout the first half of 2026 experienced a notable decline of 14% year-on-year, totaling 19.6 tonnes compared to 22.8 tonnes during the same timeframe in 2025. The downturn was primarily linked to a decrease in jewellery demand, as higher gold prices deterred many consumers from purchasing accessory items.
Jewellery demand, particularly, faced a significant 34% drop year-on-year in the first half of 2026, falling to 10.3 tonnes from 15.6 tonnes in the same period of the previous year. The trend clearly indicates a shift in consumer behavior, as purchasers are increasingly favoring gold as a form of investment rather than mere adornment. The first quarter of 2026 recorded jewellery sales of 4.7 tonnes, which slightly improved in Q2 but still trailed behind 2025 figures.
In contrast, the segment dedicated to gold bars and coins revealed an impressive increase of 29.1% year-on-year. In the first half of 2026, total purchases reached 9.3 tonnes, up from 7.2 tonnes in the previous year. This shift highlights a growing trend among consumers who view gold as a reliable store of value amidst economic uncertainties.
Globally, the gold market is witnessing a similar uptick, with the World Gold Council reporting a 2% increase in overall demand during the first half of 2026, amounting to approximately 2,522 tonnes valued at around $380 billion. As central bank purchases remain robust and investment interest persists, the landscape for gold seems favorable. Nonetheless, the pressure on jewellery demand due to soaring gold prices is a trend that might affect the industry’s future as consumers adjust to market conditions.
Looking ahead, the outlook for gold in the UAE remains dynamic. With investment demand likely to stay robust and central bank acquisitions anticipated to continue strong momentum, market players will need to closely monitor pricing and consumer sentiments. For investors in the UAE, understanding these trends is crucial for capitalizing on opportunities within the gold and precious metals market. The overall inclination towards using gold as an investment could redefine strategies for businesses in the jewellery and financial sectors.
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