Business | Markets
Dubai gold trade reaches $7 billion in first quarter 2008
Dubai Multi Commodities Centre (DMCC) announced that gold trade through Dubai reached $7 billion in the first quarter of 2008.
- Staff Report
- Published: 14:06 May 24, 2008
- Gold registers 42% rise in sales over the previous quarter.
- Image Credit: Gulf News Archive
Dubai: Dubai Multi Commodities Centre (DMCC) announced that gold trade through Dubai reached $7 billion in the first quarter of 2008, up by 73 per cent from $4.08 billion during the same period in 2007.
Despite consistently high prices, Dubai's gold trade has witnessed consistent growth over the last six months, registering a 42 per cent increase over the fourth quarter of 2007, when it reached $4.96 billion. Gold price averaged $925 per ounce during the first quarter of 2008.
According to figures compiled by the Statistics Department of Dubai World, a total of 115 tonnes of gold was exported from Dubai in the first quarter of 2008, an increase of 74 per cent from the corresponding period in 2007, and 49 per cent higher than exports during the last quarter of 2007. Gold exports from Dubai recorded 66 tonnes in the first quarter of 2007, rising to 77 tonnes in the fourth quarter of 2007.
Statistics also revealed that a total of 122 tonnes of gold was imported into Dubai in the first quarter of 2008, with imports mostly comprising scrap and jewellery. With a quarter-on-quarter comparison, this figure is an increase of 14 per cent from 107 tonnes in the fourth quarter of 2007, although imports have recorded an eight per cent decrease from 132 tonnes for the first quarter in 2007.
"With global gold prices crossing the $1000 mark and remaining significantly high throughout 2007, there has been an impact on the volume of imports into Dubai. However, in keeping with global trends, gold refining has also been on the rise," said Ian McDonald, Executive Director - Gold and Precious Metals, DMCC.
With scrap becoming an important component of imports, the Emirate's growing significance as a gold refining centre has been further emphasised. In addition, increasing export volumes of gold bullion have given a boost to Dubai's role as a leading physical hub for the regional gold trade," he added.
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