Retail gold sales in Abu Dhabi increased 25-30% in April 2009 due to lower gold prices and rising demand, especially from the Indians.
Abu Dhabi Gold and Jewellery Group said that the retail gold sales had risen 25-30% in April 2009, as reported by MENAFN.
The trading price of spot gold was registered at $905-$908 per ounce in April 2009, while it had been at $1,000 in the month of February. This decline was mainly due to the shift of investors from gold to equities, hoping the global crisis might be nearing its end.
Lower prices of gold in April 2009 led to the increase in retail gold sales. Retail prices of gold in Emirate dipped marginally from an average of $29.40 for 22 carat recorded in January 2009. This drew the buyers back to the market in April. Besides, tax free jewellery in the shopping malls and gold souks of the UAE attracted many tourists from the Gulf, Western and Asian countries.
Moreover, in India, which is the biggest consumer of gold in the world, April and May are typically considered as the months of weddings. As Indians form the largest expatriate community in the UAE and Abu Dhabi is its capital, this led to the increase in retail gold sales in the Emirate. The demand from the Indian expatriates was also high in April in wake of the Indian festival “Akshaya Tritiya”.
It is noteworthy that the volume sales of gold bars and jewellery dipped in Q1 2009 on account of sky touching gold prices and global recession.
Further, Abu Dhabi Gold and Jewellery Group is looking to set up better trade regulations, and is also planning to organize an industry exhibition. The long term plans of the industry included promoting domestic as well as foreign companies to establish their business in the Emirate as Abu Dhabi imported 90% of the total jewellery sold here.
According to a Research Analyst at RNCOS, “The future growth in the retail sales of gold will depend on the consumer confidence and the spot gold prices. It is believed that the retailers will witness mixed consumer response until the aftereffects of the financial crisis are over.”
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