More than 720kg of gold, worth $30 million (Dh110m), changed hands at key gold retailers across the Gulf on the Indian festival Akshaya Tritiya on May 16, according to the World Gold Council.

Volumes have increased 11 per cent compared to the same Akshaya Tritiya in 2009. Excluding the increase in gold price, the revenues witnessed an increase of 12 per cent compared to last year's festival.

Akshaya Tritiya is one of the most important gold buying occasions in the region and one of the most auspicious Indian festivals. Buying gold on this day is an ancient tradition and it is believed that any venture or investment initiated on this day will continue to grow and bring prosperity.

Gold retailers in the Gulf saw the best day of sales so far this year on the back of the festival. The strong demand further demonstrates the enduring value of gold and its significant cultural role, said the release.

Tomy Joseph, General Manager of Joyalukkas, said: "With such a large NRI community, cultural festivals such as Akshaya Tritiya are an important date in our calendars. The response has been very positive and we are expecting a similar response to other festivals."

"Our sales have doubled over the previous year," said Sanjay Jethwani, Partner of Meena Jewellers. "One customer alone spent more than Dh200,000. The boost in demand demonstrates a strong appetite for gold jewellery."