GCC: With Eid Al Fitr fast approaching, shoppers across the UAE, Saudi Arabia, and other Gulf states who were planning to buy gold jewellery as part of their festive purchases are facing a significant price surge. Gold prices have hit record highs in recent weeks, causing concerns among consumers who are eager to buy their traditional Eid gifts. The global surge in gold prices is largely driven by inflationary pressures and geopolitical tensions, making it more difficult for many to afford the ornaments they typically buy during this festive period.
The sharp increase in gold prices has made many shoppers reconsider their purchases, with some even opting for alternative jewellery options or postponing their buys until prices stabilize. In the UAE and Saudi Arabia, where gold jewellery is considered a traditional gift during Eid, the price hikes have been particularly noticeable, and many jewellers are reporting a decrease in foot traffic. Some consumers have already begun to turn to smaller pieces of gold or other precious metals in a bid to stay within their budgets, leading to a shift in purchasing habits across the region.
Despite the challenges posed by high gold prices, jewellery shops are trying to adjust to the new market conditions by offering various promotions and discounts on certain items to attract buyers. However, even with such efforts, many customers are finding that the cost of gold is still too steep to purchase in large quantities. The region’s gold market is known for its vibrant demand during festive seasons like Eid, but this year, the high prices have somewhat dampened the usual buying spree. Consumers have also turned to online platforms to search for deals, with several international sellers offering competitive pricing.
Industry experts predict that gold prices may remain elevated for the foreseeable future, with the potential for minor fluctuations. As shoppers continue to evaluate their options, the demand for gold jewellery may experience a dip in the short term, but long-term projections still show strong interest in gold, especially in the context of cultural and traditional significance during festive occasions like Eid Al Fitr.
