For over eight decades, Dubai has attracted gold enthusiasts from around the world, particularly Iranian and Indian shoppers who helped shape its reputation as a global gold hub. But with gold prices surging about one-third since the start of the year, Dubai jewellers are feeling the pinch. In addition, the Indian government has also slashed the import duty on gold from from 15% to 6%, reducing the price differential.
Dubai jewellers are stepping up their game to win back Indian gold buyers, who once flocked to the emirate for better prices and broader variety. Indian tourists are a major consumer group during festive seasons like Diwali and Akshaya Tritiya.
To stay competitive, Dubai jewellers are pivoting from price to product. They are curating exclusive collections that include intricate Turkish, Italian, and Singaporean designs, and even reviving traditional Calcutta and temple jewellery styles, according to a report from Khaleejtimes.com. Some brands are importing trendy designs from global markets, while others are focusing on local craftsmanship with unique offerings such as the popular “Dubai Ring,” a lab-grown diamond piece at an irresistible price.
Retailers are now banking on design innovation and premium finishing to appeal to Indian shoppers seeking exclusivity and variety over price alone.
High prices may dampen demand
In Dubai’s iconic Gold Souk, known as the “City of Gold,” shoppers are rethinking their choices as gold prices soar past $3,500 an ounce. Traditionally, 22-karat gold has been the go-to for weddings and cultural events, but surging prices are pushing buyers toward alternatives like diamonds and lighter gold pieces. Retailers cited by Reuters report a noticeable drop in foot traffic and purchases, with many citing affordability concerns.
Lab-grown diamonds are gaining traction as a cost-effective option. If high prices persist into 2025, jewellery demand could weaken further across regions like India and the Gulf, where buying trends are deeply interconnected.
Gold price surges to record high
Gold prices surged to a new all-time high above $3,500 per ounce on Tuesday, driven by rising investor anxiety after U.S. President Donald Trump criticized Federal Reserve Chair Jerome Powell. Back in India, retail prices have touched the Rs 1 lakh per 10 gram mark.
The ongoing trade war between the U.S. and China, coupled with broader geopolitical and economic uncertainty, has boosted gold's appeal. Prices have climbed over 30% since the beginning of the year, as investors seek refuge from market volatility, a weakening dollar, and unpredictable global policies.
Trump's latest remarks have heightened concerns over U.S. monetary policy, pushing investors toward the safety of gold. Trump’s continued pressure on the Fed to cut interest rates drove the U.S. dollar to a three-year low, making gold more attractive to global buyers. Analysts expect gold to remain well-supported, with technical support levels at $3,450 and $3,400. The next psychological target is $3,600.
Dubai jewellers are stepping up their game to win back Indian gold buyers, who once flocked to the emirate for better prices and broader variety. Indian tourists are a major consumer group during festive seasons like Diwali and Akshaya Tritiya.
To stay competitive, Dubai jewellers are pivoting from price to product. They are curating exclusive collections that include intricate Turkish, Italian, and Singaporean designs, and even reviving traditional Calcutta and temple jewellery styles, according to a report from Khaleejtimes.com. Some brands are importing trendy designs from global markets, while others are focusing on local craftsmanship with unique offerings such as the popular “Dubai Ring,” a lab-grown diamond piece at an irresistible price.
Retailers are now banking on design innovation and premium finishing to appeal to Indian shoppers seeking exclusivity and variety over price alone.
High prices may dampen demand
In Dubai’s iconic Gold Souk, known as the “City of Gold,” shoppers are rethinking their choices as gold prices soar past $3,500 an ounce. Traditionally, 22-karat gold has been the go-to for weddings and cultural events, but surging prices are pushing buyers toward alternatives like diamonds and lighter gold pieces. Retailers cited by Reuters report a noticeable drop in foot traffic and purchases, with many citing affordability concerns.
Lab-grown diamonds are gaining traction as a cost-effective option. If high prices persist into 2025, jewellery demand could weaken further across regions like India and the Gulf, where buying trends are deeply interconnected.
Gold price surges to record high
Gold prices surged to a new all-time high above $3,500 per ounce on Tuesday, driven by rising investor anxiety after U.S. President Donald Trump criticized Federal Reserve Chair Jerome Powell. Back in India, retail prices have touched the Rs 1 lakh per 10 gram mark.
The ongoing trade war between the U.S. and China, coupled with broader geopolitical and economic uncertainty, has boosted gold's appeal. Prices have climbed over 30% since the beginning of the year, as investors seek refuge from market volatility, a weakening dollar, and unpredictable global policies.
Trump's latest remarks have heightened concerns over U.S. monetary policy, pushing investors toward the safety of gold. Trump’s continued pressure on the Fed to cut interest rates drove the U.S. dollar to a three-year low, making gold more attractive to global buyers. Analysts expect gold to remain well-supported, with technical support levels at $3,450 and $3,400. The next psychological target is $3,600.
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