Gold jewellery sales in the UAE have seen a significant downturn, plummeting 29 percent year-on-year to just 4.5 tonnes during the third quarter. According to the World Gold Council, this sharp decline is largely driven by soaring gold prices, which have severely strained household budgets and deterred discretionary spending. Alongside the jewellery market, investment in gold bars and coins also took a hit, falling by 15 percent as potential investors adopted a "wait-and-see" approach, hoping for a retreat in prices that have recently climbed to historic highs.

While local retail demand in the UAE and the broader Middle East has faltered, the global gold market remains surprisingly resilient. Total worldwide demand dipped only slightly, bolstered by aggressive buying from central banks and a significant surge in inflows into gold-backed exchange-traded funds. As consumers globally pivot toward lighter, lower-carat pieces to cope with the high cost of gold, market analysts expect investment interest to remain the primary engine for the sector moving forward, even as jewellery consumption faces ongoing headwinds from sustained price volatility and economic uncertainty.