Commodity Online
DUBAI: As the summer vacation is coming to a close, one factor has come to the light for the jewellery traders in Abu Dhabi that their sales witnessed a huge jump of 30 per cent in June itself because of the holiday buying by Malayalis and other Asian buyers.

The holiday buying is expected to remain strong for the first half of July also.

Sales showed a huge gain of 30 per cent in June because of holiday buying. Expatriates, mainly Asians, take gold jewellery and gold bars as gifts back home every year in the summer.

According to news agency reports, retail sales were up at least 30 to 40 per cent in June compared to May. Expatriates, especially South Asians, make up the majority of the population in the United Arab Emirates.

Gulf News reported that the average price of 22 carat gold was 105 dirhams in June compared to 102 dirhams the previous month.

June prices were stable although a bit higher than in May but it was reasonable and people going on vacation had to buy anyway.

Spot gold traded from a low of $923 to a high of $983 an ounce in June compared to $884 to $975 average in May and $930 in January this year.

Retail gold prices move in line with spot prices which have eased slightly this year as investors switched from gold to equities due to the recovery in stock markets.

Tax-free jewellery in the UAE’s gold souks and shopping malls draws Gulf, Arab, Asian and western tourists.

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