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UAE gold sales up 15pc on jewel promotions

UAE gold sales up 15pc on jewel promotions
Posted: Friday, June 03, 2005
Reuters
Dubai

UAE gold sales surged 15 per cent to Dh1.8 billion ($490 million) in the first quarter of 2005 on jewellery promotions, new investment products and regional "unease", the World Gold Council (WGC) said.

Gold consumption in terms of tonnage rose 10 percent in the period to 29.8 tonnes for jewellery, up from 26.9 tonnes in the first quarter of 2004, WGC's office in Dubai said in a statement.

It said consumption from retail investment in bullion coins and bars increased 10 per cent to 2.2 tonnes in the UAE.

The statement attributed the rise to jewellery promotions, introduction of new investment products, and an "undercurrent of political and economic unease favouring gold investment".

"With consumers now accustomed to gold prices over $400 per ounce, and a growing consensus that the price of gold could rise further, the small retreat in the gold price from the peaks seen in Q4 of 2004 was seen as a strong buying opportunity," it said.

The statement said gold sales in Saudi Arabia increased 10 per cent to 37.3 tonnes, while other Gulf countries witnessed a 1 percent rise to 13.5 tonnes.

"This increase in gold sales around the Gulf proves the high affinity of consumers towards gold and gold jewellery," the WGC added.


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