The volume of Abu Dhabi gold sales were virtually unchanged in August from the year-ago period, but sales were expected to ease in September, the head of the emirate's Gold and Jewellery Group said on Wednesday. "It was a typically quiet period for Abu Dhabi, but sales did not go down as expected," Tushar Patni told Reuters without giving a figure.
"Now we are watching for September, which will witness a slow down in sales, especially that prices have been going up since the beginning of the month," he said in a telephone interview. Demand from foreign workers and residents in Abu Dhabi buying gifts to take home during the summer holiday boosted volume in the May-July period, Patni said.
"We will see some increase by end of September and during the last 10 days of the holy month of Ramadan, but it won't affect the market that much," Patni said. The lunar month of Ramadan, which starts on Thursday, is a month of fasting when devout Muslims refrain from all food, drink or sex during daylight hours. It ends with a feast, during which many couples marry.
Tax-free jewellery in the United Arab Emirates' gold souks and shopping malls draws Gulf Arab and Western tourists. Some local traders feared gold sales volume in the UAE could fall by about 10 percent in 2007, as they did in the previous year due to high prices. But industry executives have said the regional appetite for gold remains strong despite relatively high prices.
UAE Gold sales clocked up 22 percent in terms of value in the second quarter of 2007 from the year-ago period as demand from tourists increased, the World Gold Council (WGC) said on Wednesday. Second-quarter demand rose 14.6 percent to 29.8 tonnes from the same period in 2006, while sales value stood at 2.8 billion dirhams ($762.5 million), the WGC said in a statement.
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