Dubai gold jewellery sales up 32% in Sept

UPDATE 1: Fall in gold prices lures buyers back, Abu Dhabi reports increase in sales of up to 30%. 
Dubai gold jewellery sales up 32% in Sept
By Luke Pachymuthu
Wed 08 Oct 2008 01:06 AM

Gold jewellery sales in Dubai rose 32 percent in September from a year earlier after gold prices fell, the emirate's industry group said on Tuesday.

But September sales fell 3 percent from August after a buying spree that started in July ahead of a Muslim holiday, Dubai Gold and Jewellery Group managing director Tawhid Abdullah told newswire Reuters.

"Prices have come off their peak for the year and that helped contribute to the overbuying in July and August, he said.

Gold prices dipped to $748.34 an ounce in September - a 12-month low, while the monthly gold average price dropped more than 15 percent from its all-time high of $1030.80 an ounce, hit in March.

Buying ahead of the fasting month of Ramadan and the Eid feast, during which many couples marry, had contributed to the overbuying from July through August, Tawhid said.

Meanwhile, Abu Dhabi jewellery sales rose 20 to 30 percent in September from a year earlier, Abu Dhabi Gold and Jewellery Group Chairman Tushar Patni told newswire Reuters.

"Prices have fallen from its record levels, and this has fuelled sales over the past few months," Patni said.

"After the buying spree of the past few months, the sales for the second-half of September eased slightly."

Purchases ahead of Diwali, the Hindu festival of lights in October, also contributed, he said.

Spot gold traded around $883 an ounce on Tuesday. (Reuters)

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