Wednesday, 2nd June 2004 (2467 views)

Higher demand for gold and gold jewellery has been occurring in the Gulf, as retail sales of the precious metal have soared by 41 per cent.

During the first quarter of 2004, total gold retail sales reached Dh1.6 billion and gold consumption grew by 21 per cent, whilst gold jewellery increased by 22 per cent.

The managing director of the World Gold Council, Middle East, Turkey and Pakistan, Moaz Barakat, told the Khaleej Times: "Overall improved performance of gold in Middle East has been attributed to the strong oil price which provided as a background for consumer optimism in UAE and Saudi Arabia both of which reported strong year-on year rises in tonnage terms."

In addition Mr Barakat explained that gold investment as a financial asset had increased in-line with global trends, claiming the rise in performance was due to promotional activities such as the Dubai Shopping Festival.

Key gold traders in the UAE believe that jewellery consumption will continue to remain high in the area.

 

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