sales rise 18 per cent
Dubai’s gold jewellery sales
volume rose 18% last month on relatively less
volatile and lower gold prices, a senior gold
industry executive in the Gulf Arab emirate has
“So far prices are OK for buyers and not as high
as they used to be in March,” Tawhid Abdullah,
managing director of the Dubai Gold and
Jewellery Group told Reuters.
“Looking at the market now, I would say that the
18% increase we saw in May is a sign that Dubai
gold sales will continue to grow for the rest of
the year,” he said.
Gold powered to a record of $1,030.80 an ounce
on March 17 on record crude oil prices, fears of
inflation, and expectations of more interest
rate cuts in the US, making the metal more
attractive as an alternative investment.
Lower gold prices and strong Indian demand have
pushed the volume of gold jewellery sales in
Dubai in April 17%.
Dubai is a long-established market for gold
bullion and jewellery – wholesale and retail –
fuelled by strong demand from the Arab world and
Tax-free jewellery in Dubai, one of seven
members of the United Arab Emirates federation
and the Gulf’s commercial heart, lures many Gulf
Arab and Western tourists.
Demand in the UAE fell 19.3% to 24.2 tonnes in
the first quarter of 2008, the industry-funded
World Gold Council said in May.
The value of gold sales in the UAE rose 15.1% to
$862mn during the same period.
In UAE capital Abu Dhabi gold sale volumes were
steady in May. – Reuters
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