August 11, 2008

Dubai’s Gold Trade Volume Up 48 Pct in First Half of 2008

Dubai's gold trade volume up 48 pct in first half of 2008

ABU DHABI, Aug. 10 (Xinhua) -- Gold trade volume in Dubai, the commercial hub of the United Arab Emirates (UAE), hit 13.07 billion U.S. dollars in the first half of 2008, up 48 percent over 8.84 billion dollars in the same period last year, local Gulf News reported Sunday.

The report quoted Dubai Multi Commodities Center (DMCC) statistics as saying that gold exports from the emirate stood at 179 tons in the first six months of 2008, up 26.1 percent over 142 tons in the 2007 period.

The average gold price in the first six months of 2008 stood at 910 dollars per ounce, increasing by 40 percent compared with 650 dollars per ounce in the 2007 period.

Meanwhile, Dubai imported 265 tons of gold in the first half of 2008, a decline of 4.7 percent compared with 278 tons in the same period of 2007.

In terms of trading partners, India, Switzerland and Canada were top importers from Dubai, while India, Malaysia and Switzerland were top exporters to Dubai.

"Demand for gold has been resilient to global market conditions. Despite high volatility in prices, gold trade through Dubai continued to surge," said Ian MacDonald, DMCC's executive director for gold and precious metals.

"The sharp rise in prices has been a prime driver in improving export volumes, and has boosted the role of gold as an inflation- hedging instrument." he said, adding that the outlook for gold trade is promising in the remaining months of 2008.

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