Dubai's gold trade touches Dh50b

Dubai: Gold trade through Dubai in the first half of 2008 touched $13.07 billion (Dh49.96 billion), an increase of 48 per cent from $8.84 billion during the same period in 2007, figures from the Dubai Multi Commodities Centre (DMCC) showed yesterday.

In the first six months of 2008, a total of 265 tonnes of gold was imported into Dubai. During the same period, gold exports from Dubai reached 179 tonnes, an increase of 26 per cent from 142 tonnes in 2007. Gold price averaged $910 per ounce during the first half of 2008, up from $650 per ounce during the same period in 2007.

In the second quarter of 2008, gold trade grew 26 per cent to reach $6.01 billion from $4.764 billion in the same period in 2007. In the second quarter of 2008, Dubai imported 143 tonnes and exported 64 tonnes of gold.

In terms of trading partners, India, Switzerland and Canada were top importers from Dubai, while India, Malaysia and Switzerland were top exporters to Dubai.

Ian MacDonald, DMCC executive director for gold and precious metals, said: "Demand for gold has been resilient to global market conditions. Despite high volatility in prices, gold trade through Dubai continued to surge, reiterating the emirate's prominence as a global centre for gold and precious metals.

"The sharp rise in prices has been a prime driver in improving export volumes, and has boosted the role of gold as an inflation-hedging instrument. Given the current bullish sentiment of investors and gold's 'safe haven' status, the outlook for gold trade is promising in the remaining months of 2008," he added.