Consumers buy 13.6 tonnes of gold in UAE in three months

Dubai - Gold, jewellery sales are up 9 per cent.

All that glitters is gold. This adage proved right as sales of gold, jewellery, and bar and coins shone in the UAE during the second-quarter of 2017, mainly due to Hindu festival Akshaya Tritiya (check latest gold price here).

Gold and jewellery sale in the UAE jumped nine per cent in the second-quarter of 2017 as compared to same period last year, World Gold Council data showed.

UAE consumer sales rose from 12.6 tonnes in Q2 2016 to 13.6 tonnes during the April-June period of this year, an increase of nine per cent. While jewellery demand rose similar percentage from 11.2 tonnes in Q2 2016 to 12.2 tonnes in Q2 2017.

In addition, total bar and coin also sales shone during the period, rising 7 per cent.

Globally, gold demand in Q2 2017 was 953 tonnes, a fall of 10 per cent compared with the same period in 2016. Similarly, demand fell by 41 per cent in the first-half of 2017, which slowed to 2,004 tonnes. Demand for jewellery of 480.8 tonnes was 8 per cent higher year-on-year, driven by strong sales in India.

India drove global Q2 jewellery demand growth almost single-handedly as demand shot up to 126.7 tonnes compared with just 89.8 tonnes in Q2 2016. India's demand was boosted by festivals, weddings and improved rural sentiment. Estimates suggested that Akshaya Tritiya-related festival sales were up by around 30 per cent year-on-year in India.

Central banks also continued to buy gold, but at a more modest pace than in recent years, totalling 94 tonnes, a 20 per cent increase on the previous year. The most recent quarter saw Turkey's central bank adding to its gold reserves - its first significant purchase since the 1980s, the World Gold Council said.

Alistair Hewitt, Head of Market Intelligence at the World Gold Council, said: "There are a few things to watch out for in the rest of the year. Inflation data out of the US looks soft and markets have pushed out their expectations for a rate rise. The monsoon is looking good in India and, providing the market adapts to the new GST, we may see solid demand around Diwali. And as the next generation of smartphones gets rolled out we may see good support for technology demand."

waheedabbas@khaleejtimes.com