KUWAIT CITY, May 8 — Kuwait’s appetite for gold has significantly weakened in the first quarter of 2025, with total consumer demand falling by 15% to 3.8 tons, down from 4.5 tons during the same period last year, according to the latest report by the World Gold Council. The dip reflects a cautious market response to escalating global economic uncertainty and a steep rise in gold prices.

Demand for gold bars and coins dropped by 5% year-on-year in Q1 2025, reaching 1.4 tons compared to 1.5 tons in Q1 2024. Jewelry consumption experienced a sharper decline, slumping 20% to 2.4 tons from 3.1 tons in the same period.

This recent downturn continues a broader downward trend observed in 2024, when total gold and jewelry consumption in Kuwait declined by 6% to 18.4 tons, compared to 19.6 tons in 2023. While jewelry demand fell 14% to 12.3 tons, investment in gold bars and coins rose by 16% to 6.1 tons, highlighting a shift in consumer preference toward investment-grade bullion. The per capita gold consumption in Kuwait stood at approximately 3.66 grams in 2024.

Five-Year Trends and Rankings

Over the past five years, Kuwait has consumed a total of 86.4 tons of gold, positioning it as the fourth-largest gold market in the Arab world after Saudi Arabia, the UAE, and Egypt, and ranking 21st globally. This figure comprises 64.5 tons of jewelry and 21.9 tons of bars and coins. Jewelry demand steadily increased from 10.3 tons in 2020 to a peak of 14.7 tons in 2022, before retreating to 12.3 tons in 2024. At the same time, demand for gold bars and coins rose from 2.7 tons in 2020 to 6.1 tons in 2024, reflecting growing interest in gold as a hedge amid economic instability.

Price Surge Drives Down Demand

The recent drop in consumer gold demand is largely attributed to a sharp 25% rise in gold prices during the first quarter of 2025. This price surge, driven by fears of a looming global recession and ongoing economic volatility, has deterred many Kuwaitis and expatriates from making gold purchases.

Local gold prices have seen notable increases, with 24-karat gold climbing by KWD 6.5 per gram since December. Prices for 22-karat and 21-karat gold have similarly risen by KWD 5.9 and KWD 5.7 respectively, while 18-karat gold rose by KWD 4.88. The price of gold per ounce (31.3 grams) reached KWD 202.249. However, by the last week of April, prices saw a slight correction, dipping around 2% from the highs recorded in the previous week.

Gold market analysts believe the ongoing volatility has altered consumer behavior. Buyers are leaning more toward smaller, investment-grade bars (50 to 100 grams) for ease of resale and quicker profit opportunities. Jewelry demand, meanwhile, showed signs of revival amid the late-April price drop.

Import Activity Grows Despite Local Demand Drop

Despite the dip in local demand, Kuwait’s gold and precious metals imports rose notably in 2024. According to official data, imports of gold, jewelry, and related materials grew by 10.9%, reaching KWD 712.74 million, up from KWD 642.6 million in 2023.

Gold imports alone increased by 17.8% to KWD 326.86 million, while imports of jewelry and components made of precious metals rose 5.6% to KWD 385.87 million. Additionally, imports of pearls, precious stones, and semi-precious materials surged by 10.3% to KWD 729 million. Artworks and antiquities imports saw the most dramatic rise, jumping 250% to KWD 4.85 million from KWD 1.39 million in 2023.

These figures suggest a continued interest in gold and luxury imports, likely driven by investment strategies and regional trade, even as domestic consumer behavior becomes more cautious.