Dubai’s jewellery retailers started the year by selling more then seven tonnes during DSF. The gold price remained in the sub-$1, 250. After the DSF the demand went to 15 per cent as the prices went up to more then $1, 300 per ounce.
UAE’s jewellery and gold trade will have to shift their operations to include more participants. Shamlal Ahmad of Malabar Gold and Diamonds said, “The UAE and the Gulf are the only natural markets for them to expand into if they are to meet the requirements that 20 per cent of what they buy as bullion in India should be exported.”
The retailer Kalyan Jewellery is already ahead of the game by opening up six locations in a day.
“It will take a little time for shoppers to absorb the higher level and there’s no guarantee it would,” Ahmad explained. “It is unlikely that gold prices can remain anchored to lower than $1, 200 as mines would find that uneconomical. Even at $1, 200 an ounce, some mines had closed down operations.”