Dubai total gold trade reaches $7bn in first quarter 2008

Despite consistently high prices, Dubai's gold trade has witnessed consistent growth over the last six months, registering a 42% increase over the fourth quarter of 2007, when it reached $4.96bn. Gold price averaged $925 per ounce during the first quarter of 2008.

According to figures compiled by the Statistics Department of Dubai World, a total of 115 tonnes of gold was exported from Dubai in the first quarter of 2008, an increase of 74% from the corresponding period in 2007, and 49% higher than exports during the last quarter of 2007. Gold exports from Dubai recorded 66 tonnes in the first quarter of 2007, rising to 77 tonnes in the fourth quarter of 2007.

Statistics also revealed that a total of 122 tonnes of gold was imported into Dubai in the first quarter of 2008, with imports mostly comprising scrap and jewellery. With a quarter-on-quarter comparison, this figure is an increase of 14% from 107 tonnes in the fourth quarter of 2007, although imports have recorded an eight per cent decrease from 132 tonnes for the first quarter in 2007.

Ian McDonald, Executive Director - Gold and Precious Metals, DMCC, said:

"With global gold prices crossing the US$1000 mark and remaining significantly high throughout 2007, there has been an impact on the volume of imports into Dubai. However, in keeping with global trends, gold refining has also been on the rise. With scrap becoming an important component of imports, the Emirate's growing significance as a gold refining centre has been further emphasized. In addition, increasing export volumes of gold bullion have given a boost to Dubai's role as a leading physical hub for the regional gold trade."