Dubai Gold Jewellery Sales Fall 40pc in May

DUBAI — Gold jewellery sales in Dubai are down around 40 per cent in May on a year ago, hit by higher prices for the precious metal and fewer tourists with smaller budgets, retailers 
said on Sunday.

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By (Reuters)

Published: Mon 25 May 2009, 11:00 PM

Last updated: Sun 5 Apr 2015, 9:48 PM

Branded as the City of Gold, the streets of Dubai’s Gold Souk are getting fewer visitors, particularly foreigners who account for a large number of the visitors to Dubai’s souk. “Just walk around the market here you will hardly find any tourists,” said Sanjay Jity, a shop keeper from Al Khaledyah Jewellery in the old souk, or market. “The price of gold is too high and people have no money, that’s why we are seeing a slowdown in the market and our sales have gone down by 40 per cent,” said Viral Bhalani, a shop keeper at Hem’s Jewelry in the old souk. Some Dubai jewllery shops may face closure, as do their competitors in Abu Dhabi. On a global level gold prices have risen around 40 per cent to around $957 an ounce as of Friday from a low near $680 in October.

Demand for gold in the Middle East fell 26 per cent year-on-year during the first quarter, bucking a global trend that saw demand increase as investors bought gold as a safe haven from the economic maelstrom, the World Gold Council said in its quarterly report.

(Reuters)

Published: Mon 25 May 2009, 11:00 PM

Last updated: Sun 5 Apr 2015, 9:48 PM

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