According to World Gold Council data, the impact of regional geopolitical instability and lower demand from visitors caused the UAE’s demand for gold jewelry to drop 28% year over year to 5.6 tonnes in the second quarter of 2026 from 7.7 tonnes during the same time last year.
The highest price ever recorded for gold was $5,589.38 per ounce on January 28, 2026. Gold surged more than $300 during that day’s trading session, mostly due to growing tensions between the US and Iran as the US prepared to launch a significant attack on the nation.
However, demand for gold bars and coins defied the trend, rising 30% year over year to 5.3 tonnes in the second quarter of 2026 from 4.1% in the same period the previous year. According to World Gold Council data, the UAE’s demand for gold coins and bars increased by 32.5% on a quarterly basis.
For a variety of cultural and economic reasons, gold coins and bars continue to be a popular investment option in the United Arab Emirates. Gold has traditionally been associated with weddings, celebrations, and family savings customs for South Asian, Arab, and other expatriate populations.
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