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Dubai gold buyers turn to flexible payment options amid record prices
Industry executives suggest that high gold price fluctuations may influence timing, but they rarely deter serious buyers, long-term investors and tourists
- PUBLISHED: Mon 12 Jan 2026, 9:31 AM
- By:
- Waheed Abbas
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Gold and jewellery shoppers in Dubai and the UAE are shifting from impulsive to strategic buying and flexible payment plans amidst precious metal prices trading close to record highs.
Industry executives suggest that high gold price fluctuations may influence timing, but they rarely deter serious buyers, long-term investors and tourists.
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On Sunday, the prices of 24K and 22K gold were trading at Dh543.25 and Dh503.00 per gram, respectively. While 21K, 18K and 14K gold prices were trading at Dh482.25, Dh413.5 and Dh322.5 per gram, respectively.
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Spot gold closed the week at $4,509.2 per ounce, up 1.28 per cent. It hit an all-time high of $4,549.71 per ounce on December 29, 2025.
“One major trend we are seeing in 2025 is the transition from impulse buying to strategic investing. Customers demand flexible payment plans and real-time pricing tools. The geopolitical and economic factors causing volatility also reinforce gold's safe-haven appeal,” said Chirag Vora, managing director of Bafleh Jewellers.
Many jewellers in Dubai offer flexible payment plans to UAE residents and monthly savings plans to woo shoppers, and this also helps shoppers to offset the impact of the high gold prices.
Shamlal Ahamed, managing director for international operations at Malabar Gold and Diamonds, said consumer preferences are evolving towards lightweight and lifestyle jewellery, influenced more by contemporary design sensibilities than by pricing alone.
“Millennials and Gen Z are at the forefront of this shift, favouring versatile pieces designed for everyday wear, while even traditionally inclined buyers are increasingly embracing modern aesthetics,” he said.
Anil Dhanak, managing director of Kanz Jewels, said that despite short-term volatility, gold continues to be viewed as a safe-haven asset.
“Dubai’s strong reputation as a transparent, trusted, and well-regulated gold market ensures sustained demand, especially from international visitors. Price fluctuations may influence timing, but they rarely deter serious buyers—particularly tourists and long-term investors—from purchasing gold in the UAE,” added Dhanak.
Geopolitics to dictate gold
According to the World Gold Council, gold’s support is less dependent on tight physical markets and more on its macro role: sustained central bank demand, hedging demand in a world of policy uncertainty, and diversification demand when stock-bond correlations remain elevated.
In 2026, the Council projected that the gold outlook would be shaped by ongoing geoeconomic uncertainty.
“The gold price broadly reflects macroeconomic consensus expectations and may remain rangebound if current conditions persist. However, taking cues from 2025, 2026 will likely continue to surprise. If economic growth slows and interest rates fall further, gold could see moderate gains. In a more severe downturn marked by rising global risks, gold could perform strongly.
Conversely, a successful outcome from policies set by the US President Donald Trump administration would accelerate economic growth and reduce geopolitical risk, leading to higher rates and a stronger US dollar, pushing gold lower,” it said.
The ongoing geopolitical crisis in the Americas, the Middle East and Europe will be the key factor influencing the precious metal prices this year.
Joseph Dahrieh, managing director at Tickmill, said the geopolitical backdrop remains firmly supportive.
“Rising tensions in multiple regions continue to underpin demand for safe-haven assets. In Eastern Europe, escalating tensions have further reduced the likelihood of a near-term peace agreement, sustaining geopolitical risk premia in global markets. The US Senate has advanced a resolution aimed at limiting President Trump’s ability to conduct further military action in Venezuela without congressional approval, potentially tempering further escalation risk going forward,” said Dahrieh.
