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Dubai gold trade up 55pc to $5.2b in third-quarter

DUBAI — Dubai Multi Commodities Centre (DMCC) announced yesterday that gold trade through Dubai reached $5.23 billion in the third quarter of 2007, an increase of 55 per cent from $3.37 billion during the same period in 2006.

In the third quarter of 2007, a total of 174 tonnes of gold was imported into Dubai, 47 per cent higher than 118 tonnes in the same period in 2006. This is the highest third quarter imports recorded in the last seven years. During the same period, a total of 68 tonnes of gold was exported from Dubai, 28 per cent higher than 53 tonnes in the same period in 2006.

Dubai's top trading partners for gold include India, Switzerland, Malaysia and the GCC states. India and Switzerland were top importers from Dubai and India, Australia, Malaysia, USA and Switzerland were top exporters to Dubai.

Dr David Rutledge, Chief Executive Officer at DMCC, said: "The sharp rise in gold prices around the world has had a strong bearing on global gold trade. Despite consistently rising prices, the value of gold imported and exported through Dubai in this quarter has increased by 55 per cent. 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. '"

He added: "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. As a result, we expect the market to remain extremely volatile. With gold refining gathering momentum in Dubai, gold trade through the emirate will also see a further boost."