Both spellings are correct. Which one you use depends on where you are writing for.
Which spelling to use
Wikipedia says British, Indian, New Zealand, Hiberno-English, Australian and South African English use jewellery. American English uses jewelry. Both appear in Canadian English, but jewellery is about twice as common.
Where the word comes from
It derives from jewel, which was anglicised from the Old French jouel, and that traces back to the Latin jocale, meaning plaything.
What it covers
Jewellery is decorative items worn for personal adornment, such as rings, necklaces, earrings, bracelets and brooches, often made of metals like gold and silver and sometimes set with gemstones.
If you write for a UK audience, use jewellery.
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