Business | Markets
Dubai may import less gold in 2008 as demand weakens
Sharp fluctuations in gold prices could result in Dubai importing less gold this year as price volatility will weaken consumer demand for jewellery, an industry expert said.
- By Shakir Husain, Staff Reporter
- Published: 00:06 March 26, 2008
- Image Credit: Megan Hirons/Gulf News
- Indian bullion imports have dropped this year, and this in turn is having an impact on the Dubai market.
Dubai: Sharp fluctuations in gold prices could result in Dubai importing less gold this year as price volatility will weaken consumer demand for jewellery, an industry expert said.
If retail gold sales drop significantly in India, one of the top importers of the yellow metal from Dubai, it will hit the emirate's gold imports and exports.
"If price volatility continues, it may have an impact on Dubai's imports," Moaz Barakat, managing director of World Gold Council (WGC) in the Middle East, Turkey and Pakistan, told Gulf News.
Last year the city imported 559 tonnes of gold, while exports touched 287 tonnes, according to Dubai Multi Commodities Centre.
India, the world's biggest consumer of the precious metal, accounts for about 45 per cent of Dubai's gold exports, according to Dubai Gold and Commodities Exchange (DGCX).
Indian bullion imports have dropped this year due to weak consumer demand. Dubai's retail jewellery sales have declined more than 20 per cent in terms of weight this year.
But Ian MacDonald, executive director for gold at DMCC, still believes that the continuing investor-led demand for gold will push city's imports up. "It is going to be higher than last year. I would be surprised if gold imports are lower," he told Gulf News.
Conference: Two-day forum
More than 500 delegates and 20 speakers are expected to take part in the sixth Dubai City of Gold Conference next month.
An initiative of the Dubai Gold and Jewellery Group the conference will take place from April 12 to 13 at the Park Hyatt.
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