Dubai: Tentative signs of a recovery are evident, according to statistics compiled by the World Gold Council (WGC).
According to the WGC, the dollar demand for gold in 2009 remained above the $100 billion (Dh367 billion) mark for the second year in a row against the past year's economic downturn.
This strength in demand was achieved despite the average 12 per cent increase in prices over 2008.
"There is a demand for gold because people have more confidence in gold," Shamlal Ahmad, Malabar Gold's managing director of international operations told Gulf News in a previous interview.
According to the Dubai Gold and Jewellery Group (DGJG), over two-thirds of Dubai's population purchases gold at least once a year and around 95 per cent of tourists visiting the emirate buy gold items.
Statistics of the WGC show the gold market in the Middle East saw a decrease in tonnage demand by 28 per cent on 2008 levels to 250.6 tonnes.
Sustained levels
However, while tonnage demand in the fourth quarter was down 32 per cent at 51.1 tonnes on the same period in 2008, dollar demand for the same period was only seven per cent lower at $1.8 billion (Dh6.6 billion), demonstrating sustained consumer confidence for gold despite record prices and the difficult economic environment.
Diversity in the UAE gold market both on the supply and demand side, as well as its position geographically, has provided significant price support for gold over the course of the year.
"Just like every other industry, the gold and jewellery sector is going through challenging times, espec-ially with the increase in gold prices and the econ-omic slowdown affecting consumer purchasing power.
"At the same time, this has also resulted in a resurgence of faith in the investment value of gold as a monetary asset," Chandu Siroya, vice-chairman, DGJG said.
The DGJG has announced it will hold the seventh edition of the Dubai City of Gold Conference on May 2 at the Almas Tower, Dubai Multi Commodities Centre Authority.
The international conference will bring together regional and global experts to discuss the emerging trends in the gold and jewellery industry and its outlook.
"Gold bullion and investment will be one of the central themes of the upcoming Dubai City of Gold conference which reinstates Dubai's importance as a regional hub for gold trade," Siroya said.
So far, the confirmed speakers include Paul Walker, CEO of GFMS; Michael Mesaric, CEO of Valcambi SA; Walter de Wet, head of Commodities Research for Standard Bank of South Africa; Stewart Murray, Chief Executive of the London Bullion Market Association; and Raymond Key, Global Head of Metals for Deutsche Bank.
"The precious commodities industry continues to face significant volatility over the past few years.
"We are confident that this year's conference will analyse these changing industry trends and offer solutions to build the foundations for a strong industry in the future," Ahmad Bin Sulayem, Executive Chairman, Dubai Multi Commodities Centre Authority said at a press conference.
