Gold demand falls in Middle East

Thrifty consumers in the Middle East turned away from gold in the first quarter of this year, contributing to a 26 per cent drop in demand and defying a 38 per cent surge in volumes worldwide, according to the latest report by the World Gold Council (WGC).
In the first three months of this year, gold bought as an investment in the region dropped 28 per cent compared with the same period last year.

Worldwide, however, investors continued to turn to the metal as a safe investment, pushing up the total volume by 248 per cent to 595.9 tonnes. In the UAE, the fall in jewellery sales was more pronounced, with the total tonnage of gold sold falling 31 per cent to 16.6 tonnes in the first quarter compared with the previous corresponding period.

Gold as an investment in the UAE recorded a 15 per cent decline, from 2.3 tonnes to 2 tonnes, the WGC report said.