Indian buying causes gold rush in the UAE
Adam Pike, News Editor
21 May 2014, 10:52 a.m.
Total gold demand in the United Arab Emirates (UAE) reached 25.4 tonnes in the first quarter of 2014. The 16% increase from Q1 in 2013 was largely driven by Indian tourists choosing to buy gold in the UAE rather than their homeland in an attempt bypass the Indian gold import tax.
According to the World Gold Councils latest report, jewellery demand in the UAE increased by 18% to 22.1 tonnes. Despite the increase in tonnage the value of the gold jewellery sold dropped 17%. Bar and coin demand followed the same pattern with 5% increase in volume but a 17% fall in value.
According to the World Gold Council’s (WGC) latest report, overall global gold demand in Q1 remained more or less unchanged at 1,072.2 tonnes.