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Dubai’s Gold sales Fall 30pc in June

DUBAI - Gold jewellery sales in Dubai are down around 30 per cent in June on a year ago, as high prices of the metal and the economic downturn deter tourists from visiting the emirate, five jewellery retailers told Reuters.

Almost 8 million tourists visited the emirate, branded as the City of Gold, last year, many of them lured by the tax-free jewellery. But retailers Reuters spoke to say the have seen far fewer tourists this year due to the economic crisis.

“In June sales were down about 30 percent from last year. Because of the hot weather and economic conditions less tourists are here to shop,” said Sanjay Jity, a shop keeper from Al Khaledyah Jewellery in the old souk, or market.

The higher price of gold has also deterred buyers, another salesman at the souk said. The retail price of 22 karat gold was around 101 dirhams per gramme, 20 per cent higher than last year, he said. “Many people now can’t afford these prices,” the salesman said.

Retailers in Dubai’s gold souk believe the slow sales will continue until the end of September and might pick up by the end of the year as the economy recovers.