Gold prices climbed by more than Dh21 per gram on Thursday, reaching a seven-week high as hopes of the Strait of Hormuz reopening boosted the precious metal.
Spot gold traded at US$4,253 per ounce, while 24K gold in Dubai rose to Dh513.75 per gram and 22K gold to Dh475.75 per gram.
Jewellers said consumers are increasingly treating gold as an investment, driving strong demand for coins and bars while jewellery purchases have softened due to high prices.
According to the World Gold Council, global jewellery demand fell 28% year-on-year in the second quarter of 2026, while demand for gold bars and coins increased 30%.
Retailers said buyers are opting for lighter jewellery, exchanging old pieces for new ones, or delaying large purchases, while investment-led demand for bullion continues to grow amid economic uncertainty.