The UAE gold market is seeing intensifying competition among gold and jewellery retailers as prices decline and demand for bullion rises. Some stores are offering gold bars with no fees, while others have introduced discounts on fees for bullion and gold jewellery.

Gold and jewellery traders said the special offers reflect growing competition among retailers seeking to capitalise on increased demand for gold bars during the price downturn.

They said the initiatives aim to boost sales and expand retailers’ market share, benefiting both buyers and sellers.

Gold markets across the UAE have also recorded a significant increase in demand for bars of various weights and types. Lower prices and expectations among some traders that gold prices could rise again by the end of the year are among the main factors driving demand.

According to price indicators in Dubai and Sharjah, gold resumed its downward trend at the end of last week, with prices across different purities falling by between Dh2 and Dh3.50 per gram compared with the end of the previous week.

The price of 24-karat gold fell by Dh3.50 to about Dh502 per gram, while 22-karat gold declined by Dh3.25 to around Dh464.75 per gram.

The price of 21-karat gold dropped by Dh3 to Dh445.75 per gram, while 18-karat gold fell by Dh2.75 to about Dh382. The price of 14-karat gold also declined by Dh2 to around Dh298 per gram.

Ashwin Son, a gold and jewellery trader, said: “Local markets are witnessing increased competition among gold and jewellery retailers, with some offering gold bars without fees as stores seek to capitalise on rising bullion demand following the decline in the precious metal’s price.”

He explained that gold bars are exempt from value-added tax when they meet the relevant legal requirements. However, some stores charge for services such as packaging and certification.

He said these charges range from about Dh100 to Dh500 per bar, depending on the retailer.

Mangesh Balik, another gold and jewellery trader, said: “Local markets are seeing strong demand for gold bars of various types and weights. Demand has strengthened following the decline in gold prices in recent days, after prices rose the previous week.”

He added that offering gold bars without fees reflects intensifying competition among retailers and their efforts to capitalise on higher demand, expand market share and boost sales.

Ricky Dhanak, another gold and jewellery market trader, also noted the growing use of discounts and fee waivers among retailers, saying stores had stepped up competition through special offers to increase sales.

He said some stores were offering gold bars without fees, while others had reduced charges on bullion and gold jewellery. Under some promotions, the fee per bar has fallen to about Dh50.

He said the offers had positively affected the market by increasing demand for various types of gold bars and had delivered benefits for both buyers and sellers.

The trader also highlighted stronger demand for gold bars after prices fell from the previous week. He added that forecasts by some retailers of a sharper rise in gold prices before the end of the year were also encouraging buyers to purchase at current levels.