By Paul Ploumis 06 Aug 2015 Last updated at 06:09:42 GMT
ABU DHABI (Scrap Monster): Gold jewellers in the Middle East region reported robust gold sales during the past one month, on account of recent fall in gold prices. The Indian gold jewellers in the region have reported 20% to 25% jump in gold jewellery sales during the month. The robust sales is expected to sustain for some more time, as gold dealers expect gold prices to witness further drop in the upcoming months.
Gold prices continue to hover around the 5.5 year lows. The yellow metal looks to be facing selling pressure amidst hopes of possible interest rate hike by the US Federal Reserve some time later this year. On the other hand, US dollar remained resilient despite lower-than expected US jobs and trade data. Time and again, gold has failed to rally on the back of what seems to be positive clues for the yellow metal.
According to Joy Alukkas, sale of gold jewellery has surged by nearly 20% at its Middle East outlets during the past one month. To take full advantage of the increased gold demand in the region, the jeweller plans to open 10 more outlets in the region, thus taking its total tally to 50 outlets.
Meantime, Kalyan Jewellers witnessed 50% surge in gold jewellery sales during July this year when compared with the previous year. The group currently has 10 outlets in the UAE and three in Kuwait. It had opened four new outlets in the UAE during the past six months. The company is all set to enter into Qatar gold retail market within a few weeks.
Gold retailers in the region noted that sales has witnessed sudden upsurge during the past one month. The continuing decline in gold prices will generate incremental sales, they added. Also, sudden decline in gold prices may result in substantial rise in gold retail activity.