After seeing a healthy offtake in the first five months of this year, traders in Abu Dhabi's gold market are bracing themselves for a slow summer period, pinning their hopes for market recovery on stable prices.

While consumers have accepted the current price level to make holiday purchases, the Abu Dhabi Gold and Jewellery Group is planning promotions in summer to lift sales.

"The first five months of this year were good — better than last year — despite the Iraq war and the high price of gold. The average growth in sales is at least 20-30 per cent higher than last year so far," said Tushar Patni, chairman of the Abu Dhabi Gold and Jewellery Group.

"The holiday buying has started earlier this time and we expect flat sales in summer. But after that it all depends on the price."

In the last five months the price hovered between Dh42 and Dh45 per gramme.

"Buyers have accepted the current price and we believe the price will settle at current levels, other things remaining the same. This is the realistic market price," said Patni.

Agreeing that sales were better this year, a medium-sized gold trader declined to predict sales in the coming six months.

"After a bad 2003, I would say 2004 was better. The holiday buying has commenced but we traders are prepared for the worst. We are hoping prices will stabilise and our businesses also stabilise. It is difficult to forecast sales in today's circumstances."