UAE investors increasingly see gold as independent asset class

Total demand for gold in the UAE dropped 19% in the second quarter of 2009 compared with a 31% fall in the first quarter, according to the World Gold Council (WGC).

Total demand for gold in the Middle East region fell by 18% in the second quarter to 72 tonnes (total demand was up 33% on the previous quarter).

The investment component of demand fell 31% to 3.8 tonnes, while jewellery off-take was 17% below Q2 2008 levels at 68 tonnes (demand for jewellery was up 37% on the previous quarter, but this was to a significant extent a seasonal improvement).