Dubai: Gold purchases in the UAE increased by 25.3% quarter-on-quarter during the second quarter of 2026, reaching 10.9 tonnes, driven by strong demand for gold bars and coins as consumers increasingly turned to precious metals for savings and investment purposes.According to a report by the World Gold Council, total UAE gold demand, including jewellery, bars and coins, rose from 8.7 tonnes in the first quarter to 10.9 tonnes in the second quarter of 2026.Strong growth in bars and coinsDemand for gold bars and coins recorded the strongest growth, increasing 32.5% quarter-on-quarter to 5.3 tonnes during the second quarter, compared with 4 tonnes in the first quarter.Jewellery purchases also increased during the quarter, rising 19.1% to 5.6 tonnes, compared with 4.7 tonnes in the first three months of the year.First-half demand declinesDespite the strong second-quarter performance, total UAE gold demand during the first half of 2026 fell 14% year-on-year to 19.6 tonnes, compared with 22.8 tonnes during the same period of 2025.The decline was attributed to weaker jewellery demand amid elevated gold prices.Total first-half purchases were divided between:3 tonnes of jewellery3 tonnes of gold bars and coinsJewellery demand weakensThe report showed that jewellery purchases declined 34% year-on-year during the first six months of 2026, falling to 10.3 tonnes from 15.6 tonnes during the same period in 2025.Jewellery demand was distributed as follows:Q1 2026: 4.7 tonnesQ2 2026: 5.6 tonnesCompared with:Q1 2025: 7.9 tonnesQ2 2025: 7.7 tonnesInvestment demand risesIn contrast, purchases of gold bars and coins increased by 29.1% year-on-year during the first half of 2026, reaching 9.3 tonnes, compared with 7.2 tonnes a year earlier.The figures indicate a growing shift in consumer behaviour from purchasing gold primarily for adornment toward using it as a store of value and investment asset.Bars and coin sales were distributed as follows:Q1 2026: 4 tonnesQ2 2026: 5.3 tonnesCompared with:Q1 2025: 3.1 tonnesQ2 2025: 4.1 tonnesGlobal gold demand risesThe World Gold Council reported that global gold demand increased 2% during the first half of 2026, reaching approximately 2,522 tonnes with a value of around $380 billion.The council expects investment demand to remain the primary driver of gold consumption during the second half of the year, while central bank purchases are projected to remain strong for a second consecutive year.However, the report noted that jewellery demand is likely to remain under pressure as elevated gold prices continue to affect consumer purchasing patterns.Patrick Castillo
