In the bustling markets of Dubai and Doha, gold prices are experiencing notable fluctuations, prompting changes in consumer behavior and investment strategies. As of April 19, 2025, the Dubai Gold Rate is just Dh1 lower than the record high of Dh372.25 per gram for 22K gold, which was reached on April 16. Meanwhile, the price for 24K gold has climbed back to slightly over Dh400.
This surge in gold prices comes as a disappointment to many shoppers who had hoped for more stable rates. Just a day earlier, on April 18, the price of 22K gold had dipped below Dh370 for most of the day. Despite these rising costs, a significant shift in consumer purchasing patterns is unfolding. Shamlal Ahmed, Managing Director of Malabar Gold & Diamonds, noted that even regular buyers of jewelry are now opting for gold bars and coins. “There are shoppers who would never have thought of buying anything other than gold jewelry now insisting on buying gold bars,” he stated.
Ahmed highlighted that currently, 30% of shoppers in the UAE are choosing to invest in gold bars and coins, a dramatic increase from just 8% a few months ago. This shift is largely driven by a desire to avoid making charges associated with jewelry purchases. “A sizable number of shoppers – those making regular investments in gold – do not want to spend on jewelry making charges right now,” explained a jeweler operating in Dubai's Gold Souq.
The demand for gold is closely tied to market predictions. As of this weekend, the price of bullion is at $3,315 per ounce, significantly lower than the $3,350 mark it reached earlier in the week. Ahmed speculated that gold prices could push towards $3,700 later this year, which is influencing buyers to invest in bars and coins as they anticipate further price increases.
In contrast, the Qatari gold market is also experiencing a rise in prices. According to data released by Qatar National Bank (QNB), the price of gold in Qatar increased by 3.18% this week, reaching $3,341.52 per ounce, up from $3,238.49 recorded the previous Sunday, April 13. This increase reflects a broader trend in precious metals, as silver also saw a rise of 0.98%, climbing to $32.62 per ounce from $32.30, while platinum rose by 2.45% to reach $974.97 per ounce.
As consumers navigate these fluctuating prices, many are reconsidering their investment strategies. The trend towards gold bars and coins not only offers a way to sidestep jewelry making charges but also reflects a growing confidence in gold as a stable investment during uncertain economic times. Ahmed further noted that while global funds with significant gold holdings might eventually sell off some positions, any potential drop in prices would be welcomed by shoppers. A decrease to around $2,900 per ounce would mirror levels seen in February 2025, which were considered too high for buyers at that time.
Overall, the changes in consumer behavior, coupled with the rising prices of gold and other precious metals, highlight a significant moment in the market. As both Dubai and Doha continue to experience these shifts, shoppers are adapting their strategies to maximize their investments in gold, demonstrating a keen awareness of market trends and future possibilities.
