AGL 40.20 Decreased By ▼ -1.30 (-3.13%)
AIRLINK 129.11 Increased By ▲ 1.11 (0.87%)
BOP 6.60 Increased By ▲ 0.34 (5.43%)
CNERGY 4.03 Decreased By ▼ -0.10 (-2.42%)
DCL 8.45 Increased By ▲ 0.01 (0.12%)
DFML 41.25 Increased By ▲ 0.56 (1.38%)
DGKC 87.00 Decreased By ▼ -0.90 (-1.02%)
FCCL 33.35 Decreased By ▼ -0.75 (-2.2%)
FFBL 65.90 Decreased By ▼ -0.43 (-0.65%)
FFL 10.54 Decreased By ▼ -0.02 (-0.19%)
HUBC 110.70 Increased By ▲ 2.00 (1.84%)
HUMNL 15.23 Increased By ▲ 0.77 (5.33%)
KEL 4.78 Increased By ▲ 0.13 (2.8%)
KOSM 7.83 Increased By ▲ 0.50 (6.82%)
MLCF 41.90 Decreased By ▼ -0.82 (-1.92%)
NBP 60.50 Decreased By ▼ -0.34 (-0.56%)
OGDC 182.80 Increased By ▲ 3.83 (2.14%)
PAEL 25.36 Decreased By ▼ -0.34 (-1.32%)
PIBTL 6.26 Increased By ▲ 0.20 (3.3%)
PPL 147.81 Increased By ▲ 1.66 (1.14%)
PRL 24.56 Decreased By ▼ -0.35 (-1.41%)
PTC 16.24 Increased By ▲ 0.10 (0.62%)
SEARL 70.50 Increased By ▲ 0.30 (0.43%)
TELE 7.30 Increased By ▲ 0.08 (1.11%)
TOMCL 36.30 Increased By ▲ 0.10 (0.28%)
TPLP 7.85 Increased By ▲ 0.01 (0.13%)
TREET 15.30 Decreased By ▼ -0.29 (-1.86%)
TRG 51.70 Increased By ▲ 1.34 (2.66%)
UNITY 27.35 Increased By ▲ 0.45 (1.67%)
WTL 1.23 Decreased By ▼ -0.01 (-0.81%)
BR100 9,842 Increased By 47.4 (0.48%)
BR30 30,036 Increased By 389.6 (1.31%)
KSE100 92,520 Increased By 499.1 (0.54%)
KSE30 28,786 Increased By 121.7 (0.42%)

Record high gold prices dampened Dubai's gold sales in February, depressing volume by about 15 percent from a year-ago, a top industry executive said on Tuesday. Dubai, the Gulf trade and business hub, is a traditional market for gold bullion and jewellery, meeting strong demand from the Arab world and India, the world's main gold market.
"Relatively speaking, the 15 percent drop we saw last month is not bad, especially that prices are now above $1,000 an ounce," Tawhid Abdullah, managing director of the Dubai Gold and Jewellery Group, an industry association, told Reuters.
"The market is okay now, and overall, diamond jewellery sales are compensating for the drop in gold jewellery," he said in an interview. Gold, seen as a hedge against the weak US dollar, has gained more than 23 percent this year on bets of rising inflation amid deepening US financial concerns that were weakening the greenback against other currencies.
The precious metal steadied at around $1,000 an ounce ahead of the US Federal Reserve's meeting on interest rates on Tuesday, but investors and speculators were still keen to book profits after pushing up the price to record highs. Traders had hoped gold jewellery retail demand would be upbeat if prices drop below $900 an ounce.
Dubai, one of seven members of the United Arab Emirates (UAE) federation, saw the volume of gold sales in the fourth quarter drop 30 percent on the year as high and volatile prices scared many buyers, Abdullah has said. In the UAE capital Abu Dhabi, a much smaller market than Dubai, record prices have frightened gold buyers, depressing the precious metal sales volume by 20 percent in February, the emirate's Gold and Jewellery Group chief has said.
Tax-free jewellery in the UAE gold souks and shopping malls have traditionally drawn Gulf Arab and Western tourists but high prices, which hit demand in India and Italy, took their toll on Dubai's gold market.
UAE's full-year 2007 gold demand rose 8 percent to 99.8 tonnes, but it fell 8.1 percent to 19.3 tonnes in the fourth quarter, the World Gold Council (WGC) has said. Value of gold sales in the UAE rose 23.8 percent to $2.6 billion in 2007. Fourth-quarter sales value reached $516 million, almost 6 percent increase from the same period a year earlier, it added.

Copyright Reuters, 2008

Comments

Comments are closed.