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Monday, 12th December 2005 (5617 views)

Dubai is set to cement its status as one of the world's fastest-growing gold hubs, with imports expected to rise by over a fifth next year.

A Dubai Metals and Commodities Centre (DMCC) official told Gulf News that the United Arab Emirates capital is on course to buy in 23 per cent more of the yellow metal in 2006 if prices stabilise.

The desert city's gold credentials have soared since last month, when the DMCC was launched.

This has allowed Dubai to act as a regional wholesale and jewellery hub for India, the world's largest consumer of gold.

The projected surge in imports would see Dubai buy in 650 tonnes of gold in 2006, up from 530 tonnes this year.

But the DMCC official also admitted that imports could be static if the price of gold continues to shoot up.

The precious metal broke the $500 an ounce mark late last month and has continued to rise to its current value of around $535.

Whether the price will settle down is still far from clear.

Broker firm UBS predicts gold will surge 14 per cent in 2006, while some commentators insist the metal will continue climbing until it hits $1,000 an ounce.

 

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