Dubai: UAE’s gold and jewellery sales were down a substantial 22 per cent in the second quarter, according to figures released by the World Gold Council.
The lower off-take between April to end June was "attributed to lower spending by European tourists (on the back of the weaker euro) and regional geo-political tensions," the WGC report states.
"The timing of Ramadan – encroaching further into Q2 compared with last year – was a further obstacle."
The weak consumer sentiment mirrored similar trends recorded in India and China, the two largest consumers of the yellow metal.
This was enough to pull down overall global demand by 12 per cent year-on-year to 915 tonnes, according to the WGC report.
It could have got a lot worse for UAE’s had not gold prices dipped sharply over the last three weeks to be in the Dh125 a gram average range.
This was enough to set off a surge in buying activity during the period, despite signs that prices could push up as a response to China’s currency devaluation, market sources say.
