As the global economic outlook remains uncertain, gold markets will likely remain volatile.
International spot gold prices jumped US$65 per ounce after the report, reflecting investor demand for safe havens amid economic uncertainty. The rally came on the heels of already elevated prices, leading many to wonder whether it was the right time to buy or sell.
To entice customers, some jewelry retailers offered zero making charges on select items. This strategy reduces the cost above the raw gold price, making certain pieces more affordable. However, the promotions were often time‑limited and applied only to specific designs, leaving many shoppers paying full premiums. Despite these efforts, overall gold jewelry sales in the UAE dropped to 7.7 tones in the second quarter of 2025, a 16 % decline year‑on‑year. According to the World Gold Council, record‑high prices deterred buyers, and even steep discounts and lower making charges could not sustain demand.
The high price environment has also affected investment patterns. The demand for gold coins—a popular investment among residents—fell dramatically in the first half of the year, while gold bars saw modest growth. Analysts suggest that investors may be turning to other asset classes or waiting for corrections before increasing their holdings. In the retail sector, jewelers are careful not to cut making charges across the board because their margins are already thin. Some highlight the intrinsic value of owning gold jewelry for weddings and gifts, but others recommend focusing on smaller pieces that are more affordable.
As the global economic outlook remains uncertain, gold markets will likely remain volatile. For shoppers, the key is to compare prices across stores and watch out for promotions. For investors, a long‑term perspective is essential: while prices may fluctuate, gold remains a traditional hedge against inflation and currency risk. The current surge has reignited interest in the metal, but high prices and lower sales volumes indicate that consumer behavior is shifting. The coming months will reveal whether the market stabilizes or enters a new phase of fluctuation.
Sources: gulfnews.com https://economymiddleeast.com/