Commodity Online
DUBAI: India’s wedding season, Akshaya Tritiya and fall in prices have helped Abu Dhabi increase its gold sales in April.

According to reports, volume of retail gold jewellery sales jumped by 25%-30% in Abu Dhabi in April.

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Sales volumes of jewellery and gold bars dropped 20% in the first quarter of 2009 compared to the same period last year, as rising prices and the impact of the economic crisis on consumers crimped buying.

Again retail prices, which move in line with spot gold, have fallen a little from an average $29.40 for 22 carat in January.

Retail sales in Abu Dhabi had dropped at least 70% in February, a little more than the 70% fall in January.

April and May are traditionally the peak months for weddings in India, the largest gold consumer market in the world.

Abu Dhabi retail gold sales are slowest from June to August, the summer months when expatriates leave on vacation and traders are hoping prices will remain stable this month.

The UAE has a long-established market for gold bullion and jewellery fuelled by strong demand from the Arab world and India.

Nearly 90% of total consumer offtake in the region is in the form of jewellery. Weakness in this sector which was down 7% largely offset strong growth of 139% in the net retail investment.

Abu Dhabi has some 85 gold shops and its own jewellery manufacturers. Imports, however, make up almost 60% of all jewellery sold at retail outlets.

Retailers in the emirate of Abu Dhabi sold around 4,500 kg of the precious metal in the first quarter.