DUBAI, 5 August 2007 — Abu Dhabi gold sales volume rose 10 percent in July compared to the year-ago period on demand by foreign residents buying gifts ahead of vacations at home, the emirate’s Gold and Jewelry Group chairman said yesterday.
“Expatriates continued to buy gold jewelry before their holiday, but sales were slowing down by the end of the month as we approached the holiday season,” Tushar Patni told Reuters.
“We also had gold prices rising during that period and some buyers were reluctant to pay more,” he said in a telephone interview.
In May 2006, spot gold bullion hit a 26-year high at $730 an ounce. It closed at $676.40/677.15 a troy ounce on Friday.
Demand from foreign workers and residents in Abu Dhabi buying gifts to take home during the summer holiday boosted volume since the beginning of May, Patni said.
“August, which is always the slowest month of the year, and September will be a very quiet period. But sales will pick up again in October, especially during the last ten days of the holy month of Ramadan,” Patni said.
Labor charges and higher costs of living, which have contributed to higher sales prices for finished pieces, will also affect the market, he said.
The volume of gold sales in Abu Dhabi rose 10 percent on the year in July, while sales value jumped by 25 percent during the same period, Patni said.