Business | Markets
Dubai's gold trade touches $5.23b on surge in imports
The Dubai Multi Commodities Centre (DMCC) yesterday reported that Dubai's gold trade touched $5.23 billion in the third quarter of 2007. This is 55 per cent growth over the $3.37 billion of 2006.
- Staff Report
- Published: 23:44 October 24, 2007
Dubai: The Dubai Multi Commodities Centre (DMCC) yesterday reported that Dubai's gold trade touched $5.23 billion in the third quarter of 2007. This is 55 per cent growth over the $3.37 billion of 2006.
A total of 174 tonnes of gold was imported in the third quarter, 47 per cent higher than the 118 tonnes in 2006.
These are the highest third-quarter imports recorded in seven years. A total of 68 tonnes of gold was exported from Dubai, 28 per cent higher than the 53 tonnes exported in 2006.
Dubai's top trading partners in gold include India, Switzerland, Malaysia and the GCC states.
India and Switzerland were top importers from Dubai. India, Australia, Malaysia, the US and Switzerland were top exporters to Dubai.
Dr. David Rutledge, DMCC chief executive, attributed the gains to high global prices. "The sharp rise in gold prices around the world has had a strong bearing on global gold trade."
Rutledge added, "Despite consistently rising prices, the value of gold imported and exported through Dubai in this quarter has increased. This continued confidence in Dubai's gold market reinforces the emirate's traditional role as an important hub for the international gold trade."
Colin Griffith, executive director for gold at DMCC, said: "Gold prices, which averaged $680 per ounce in this quarter, have seen a sharp rise, backed by strong investor sentiment. The significant amount of gold trade through Dubai, while prices are at historical highs, reflects the good service and excellent pricing in the City of Gold.
"Several factors are expected to impact the price of gold this year, including fluctuations in the US economy, oil prices and social and political unrest around the world.
Griffith said the DMCC expected the market for gold to remain extremely volatile. "With gold refining gathering momentum in Dubai, gold trade through the emirate will see a further boost."
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