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In a glittering world dimmed by high prices, the UAE’s gold jewellery demand plummeted by 15% during Q3 of 2023, reflecting a global slowdown. This decline, attributed to the exceptional sales of the previous year, is part of a broader trend with Egypt experiencing a 27% drop, while India stood out with a 7% increase. Globally, gold jewellery consumption fell by 2%, as soaring gold prices reached record highs in certain markets due to currency fluctuations.
Highlights
UAE Decline: Gold jewellers in the UAE experienced a 15% drop in sales during the third quarter of 2023 compared to the previous year. This decline reflects a global trend caused by significantly high gold prices.
Statistics: Jewellery demand in the UAE fell by 15% to nine tonnes in the third quarter, with year-to-date demand down by 19% to 29 tonnes compared to the same period the year before. Across the Middle East, the overall demand decreased by 12% to just under 43 tonnes.
Reasons for Decline: The drop in demand is primarily attributed to the high base of sales from the previous year. The report indicates that the “2022 post-COVID-19 resurgence faded from view,” contributing to this decline.
Global Trends: Egypt experienced the sharpest decline in the region with a 27% drop in demand due to the devaluation of the local currency. Other markets also witnessed declines:* China (6%), the US (4%), Europe (3%), Thailand (2%), Vietnam (14%), and Indonesia (20%).
Positive Trend in India: In contrast to the global decline, India saw a rise in demand by 7% for gold jewellery, presenting a positive trend in the midst of the overall decrease.
Overall Global Situation: The report noted that despite fluctuations in different markets, the overall global gold jewellery consumption fell by 2%. This decline is attributed to the continued high prices of gold, which in some markets reached new record levels due to currency fluctuations.
Conclusion
In conclusion, the decline in gold jewellery demand in the UAE, driven by the persistently elevated gold prices, mirrors a global trend that saw similar drops in key markets across the Middle East, China, the US, Europe, and Southeast Asia. While the UAE’s 15% decrease in Q3 2023 was largely due to the remarkable sales of the preceding year, Egypt’s sharp 27% decline stemmed from a weakening local currency. Notably, India emerged as a positive outlier, experiencing a 7% rise in gold jewellery demand amidst this challenging environment. The overarching trend of a 2% global decline in gold jewellery consumption is indicative of the strong influence of gold prices, which reached record levels in certain markets due to currency fluctuations. As the world navigates through these economic dynamics, it will be intriguing to see how gold jewellery markets evolve in response to these shifting economic forces.
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