UNITED ARAB EMIRATES October 16 2014 6:04 PM
DUBAI (Scrap Register): Dubai’s physical gold trade has become challenged after 11 years of almost continuous growth, but an upturn is likely before year-end, as per Metals Focus.
Several factors account for a subdued performance, but the biggest is the restrictions on imports into India. These policies have visibly hampered the once vibrant gold trade between the two countries, said Metals Focus, also citing general weakness in the economy.
The firm also cited the deteriorating situation in Iraq, which until recently had been an increasingly important gold jewelry market. In terms of local consumption in Dubai, two points stand out, said Metals Focus, listing weaker investor sentiment and sluggish local jewelry consumption.
On a positive note, the overall improvement in gold jewelry exports from Turkey to Dubai more recently is indicative of a recovery across the Emirates, which is likely to gather momentum towards year-end.
Even so, this may not be sufficient to offset a weaker start to 2014 and so, for the full year totals for Dubai, we are still likely to see a double digit fall in both total gold bullion imports and exports, Metal Focus added.