The Dubai Gold trade increased 48 percent year-over-year to $13.07 billion in the first half of 2008, according to the Dubai Multi Commodities Centre.
In the first six months of 2008, a total of 265 tons of gold was imported into Dubai, the DMCC reports. During the same period, gold exports from Dubai increase of 26 percent to 179 tons, year-over-year. Gold price averaged $910 per ounce during the first half of 2008, up from $650 per ounce during the same period in 2007.
In the second quarter of 2008, gold trade grew by 26 percent to $6.01 billion when compared to the same period in 2007. In the second quarter of 2008, Dubai imported 143 tons and exported 64 tons of gold.
In terms of trading partners, India, Switzerland, and Canada were top importers from Dubai, while India, Malaysia, and Switzerland were top exporters to Dubai, the DMCC said.
“Demand for gold has been resilient to global market conditions,” said Ian MacDonald, Executive Director for Gold & Precious Metals, DMCC. “Despite high volatility in prices, gold trade through Dubai continued to surge, reiterating the emirate’s prominence as a global centre for gold and precious metals.”
He added, “The sharp rise in prices seen earlier this year has been a prime driver in improving export volumes, and has boosted the role of gold as an inflation-hedging instrument. Given the current bullish sentiment of investors and gold’s ‘safe haven’ status, the outlook for gold trade look promising in the remaining months of 2008.”
He also said that the region will witness more initiatives in a shift towards gold exchange traded funds. Earlier this year, DMCC in association with the World Gold Council launched the Sharia-compliant gold shares, the first dollar-priced security of its kind, to be listed on the Dubai International Financial Exchange.