Gold jewellery sales flat in capital, dip 40% in Dubai

Gold jewellery sales remained largely flat in May as stable prices attracted expatriates leaving on summer holidays, the chairman of the Abu Dhabi Gold Jewellery Group said yesterday.

In Dubai jewellery sales dropped by around 40 percent in May, hit by fewer tourists and tighter budgets, retailers said.

Earlier this year, many smaller retailers in Abu Dhabi were under threat of shutting down as the economic crisis and high prices cut consumers' appetite for the precious metal.

In April however, gold sales rose 25 to 30 per cent due to lower prices and the start of the Indian wedding season which brought back buyers to the market.

"In May it was standard. There was no increase or decrease in sales and this was largely due to stable prices in the first three weeks," Tushar Patni said. "In the last week of May prices went up, so sales were not good but overall last month was okay because many shopped as they leave on vacation."

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