Gold jewellery sales in the UAE fell about 14 per cent in the fourth quarter of last year, while purchases of bullion and coins rose by about 11 per cent, according to the World Gold Council (WGC). "People are still going toward gold as an investment, but there is slight drop in jewellery sales," said Lama al Saheb, the WGC's head of marketing and public relations in the Middle East. Ms Saheb said the economic crisis began to hit gold demand in the UAE in the final months of 2008. However, when the council releases Q4 statistics next month, the drop in jewellery sales will be no more than 14 per cent, she said.
"The drop is not going to be more than 14 per cent, which is good compared to (drops in) other commodities," she said. Gold ended 2008 at US$869.75 (Dh3,195) per ounce on the London PM fix, up four per cent from the year before, according to a World Gold Council report. Comparatively, lead, nickel, copper and oil fell by 63 per cent, 58 per cent, 57 per cent and 56 per cent respectively, the report said.
Gold closed at $898.30 in New York on Jan 23, the latest trading day. aligaya@thenatonal.ae
