UAE Gold Jewellery Demand Falls 29% in Third Quarter as High Prices Deter Buyers

The council said high gold prices, pressure on household purchasing power and geopolitical uncertainty, which has also cut tourist numbers, held back discretionary buying across the Middle East. UAE bar and coin demand fell 15 per cent year on year and 46 per cent from the previous quarter to 2.9 tonnes, as investors waited for prices to fall further.

The weakness extended across the Gulf. Saudi jewellery demand fell 12 per cent to 8.2 tonnes and Kuwait's dropped 29 per cent to 1.7 tonnes. Retail bar and coin investment across the Middle East fell 24 per cent to 22 tonnes.

Global Demand Holds Up

Global demand including over-the-counter trade slipped only 1 per cent to 1,369 tonnes. For the first nine months, demand of 3,881 tonnes almost matched the record 3,884 tonnes set in 2025, and its value reached a record $566 billion. The gold price averaged $4,262 an ounce in the quarter, 23 per cent higher than a year earlier.

Central banks and funds offset the drop in consumer buying. Central bank purchases rose 42 per cent to 321 tonnes, led by the People's Bank of China with 63 tonnes and Poland's central bank with 40 tonnes. Gold-backed exchange-traded funds took in 211 tonnes, pushing global holdings to a record 4,256 tonnes, with record inflows of $31 billion.

Global jewellery demand fell 17 per cent to 313 tonnes, the weakest third quarter in the council's records going back to 2000 and the 13th quarterly decline in a row. In India, the largest jewellery market, demand fell 20 per cent to 99.9 tonnes.

The council expects investment to remain the main source of demand growth in 2026 and jewellery demand to keep falling. On Tuesday morning gold was trading at $3,909 an ounce, down 1.2 per cent, with 24K gold at Dh473 a gram in Dubai.

For Dubai's gold retail trade, which relies heavily on tourists, the figures point to a difficult quarter: buyers are moving towards lighter, lower-carat pieces while investment demand goes to central banks and funds rather than shop counters.