Wednesday, 14th February 2007 (3381 views)

With some experts predicting a more stable gold price over the course of 2007, the effect could be a positive one on the gold jewellery industry in the UAE.

This is the opinion of Moaz Barakat, the World Gold Council's managing director for the Middle East, Turkey and Pakistan, who told Gulf News that gold jewellery sales could hit Dh9 billion (£1.26 billion) this year.

The prediction of stability will be music to the ears of jewellers after last year's cancellation of the Dubai Shopping Festival (DSF) and the ever-changing gold prices during the first half of 2006 meant that confidence in the gold jewellery trade was adversely affected in the UAE.

Mr Barakat explained: "Usually the level of trade at the beginning of the year affects the psyche of the entire industry. After the excellent start to the year we had thanks to sales during DSF, people are optimistic about the gold jewellery market."

He continued to state that last year, the "volatility" of the gold market was having a knock-on effect on optimism for the jewellery industry as investors and traders were "nervous" of the market.

Mr Barakat added that this year will probably see an emphasis placed on 22-carat gold, which was an "untapped sector" last year.

 

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