Increase in Gold Purchases in the UAE
Purchases of gold bullion and coins in the United Arab Emirates rose by 25% in the second quarter of this year compared to the same period last year, according to a recent report from the World Gold Council.
In detail, the demand for gold jewelry reached 9.2 tons in the second quarter of 2024. Meanwhile, the demand for gold bullion and coins increased from 3.3 tons in the second quarter of 2024 to 4.1 tons in the second quarter of 2025, demonstrating a significant 25% rise.
The report highlighted a surge in the demand for the precious metal in the second quarter, driven by investment interest, despite central banks reducing their purchases. The global demand for gold—considering over-the-counter trade—also saw a yearly increase of 3%, totaling 1,248.8 metric tons in the second quarter of this year, with investment demand skyrocketing by 78%.
The report further indicated that central banks acquired 166.5 tons of gold during the second quarter, which is approximately one-third less than purchases made in the first three months of the year. This reduction led to the lowest level of purchases in the first half of the year since 2022.
Furthermore, global consumption of gold jewelry experienced a 14% decline, amounting to 341.0 tons, marking the lowest level since the third quarter of 2020. John Reed, a strategic expert at the World Gold Council, commented:
“If you are looking to allocate a portion of your foreign reserves to gold, significant price increases can dampen the motivation to buy. Rapid price gains have led to reduced demand due to fears of potential price declines,” as reported by Bloomberg.