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Tue 8 May 2007 01:35 AM

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Rising gold prices concern retailers

Dubai gold retailers fear consumer resistance if price goes above $700.

The gold industry has raised concerns that consumers will fall away if prices cross the $700 per ounce threshold, Gulf News says today.

Jewellery sales volume in Dubai last year was 108 tonnes, and the industry is trying to achieve the same level this year.

Dubai Gold and Jewellery Group (DGJG) vice-chairman Chandu Siroya told the paper "It is very important to maintain the 2006 volume. The market has so far absorbed high prices but if it goes beyond $700 then there is going to be consumer resistance."

According to the World Gold Council, UAE gold demand fell about 10% in volume terms in 2006.

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