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.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.