Sparkling Shift: Dubai's Gold Souk Sees Shifting Trends Amid Rising Gold Prices

Dubai's Gold Souk faces changing trends as soaring gold prices drive buyers toward diamonds and lab-grown gems. The traditional 22-karat jewellery loses appeal, with trade tensions and price volatility influencing consumer behavior. Despite declining demand, growth in diamond markets underscores a shift in investment and adornment choices.

The bustling Gold Souk in Dubai, often called the 'City of Gold', is witnessing a change in shopping trends. With gold prices soaring past $3,400 an ounce, buyers are turning to alternatives like diamonds and lighter gold jewellery. This shift highlights the dual nature of gold, valued both as adornment and safe-haven investment.

The World Gold Council's Andrew Naylor notes this trend, emphasizing that while some see gold as a secure asset, high prices are weakening demand for gold jewelry. Retailers at the Souk confirm the shift, with rising prices pushing shoppers towards cost-efficient options such as lab-grown diamonds.

As the demand for gold jewelry dips by around 13% in the UAE, Doha faces a similar scenario, reflecting broader market trends. Driven by trade tensions and economic uncertainties, industry experts predict that demands could continue to dwindle if prices remain elevated. With lab-grown diamonds gaining popularity, the region could see a lasting shift in jewelry preferences.

(With inputs from agencies.)