Youssef Al Arabi (Abu Dhabi)
The volume of gold sales in the UAE during the first quarter of the year 2024 reached about 10.8 tons, with an estimated value of about 2.84 billion dirhams, according to the “Gold Demand Trends” report, issued by the World Gold Council.
The report stated that jewelry accounted for 81.48% of the total volume of gold sales in the Emirates, during the period from January to March last year, after its sales volume reached about 8.8 tons during the period referred to.
The share of financial instruments, bullion and gold coins amounted to 18.52% of the total volume of gold sales in the UAE during the first three months of the current year.
Sales of financial instruments and bullion in the Emirates, during the period from January to March 2024, reached about two tons.
The Middle East
The Middle East is the third largest gold consumer market in the world, and the rise in the price of gold to record levels has led to a decline in consumer demand in the region, which witnessed a decline of 4% in the first quarter of this year. The attractiveness of gold lies in its being a safe haven, and the expected decline At interest rates later this year, it will act as a support for gold demand in the region later this year.
The Gold Demand Trends Report for the first quarter of 2024 issued by the World Gold Council revealed that the total global demand for gold (including over-the-counter purchases) rose by 3% year-on-year to 1,238 tons, which is the strongest first quarter since 2016. Demand excluding direct sales fell by 5% to 1,102 tons in the first quarter compared to the same period in 2023.
Strong investment from the direct selling market, continued buying by central banks, and rising demand from Asian buyers, helped push the price of gold to a record quarterly average of $2,070 per ounce – 10% higher year-on-year and 5% higher quarter-on-quarter.
Central banks
Central banks continued to buy gold rapidly, adding 290 tons to official global holdings during the quarter. The continued and large purchases by the official sector highlight the importance of gold in international reserve portfolios amid market volatility and increased risks.
Turning to investment demand, investment in bullion and coins increased by 3% year-on-year and remained stable at the same levels, as of the last quarter of 2023, at 312 tons.
Gold ETFs continued to record outflows as global holdings decreased by 114 tons, led by North American and European funds, while being slightly offset by inflows into listed products in Asia. China was responsible for the bulk of this increase, with renewed investor interest in gold as a result of weak… Both the local currency and the performance of local stock markets.
Global demand for jewelry remained resilient, despite prices rising to record levels, declining only 2% year-on-year. Demand in Asia was met with declines in Europe and North America.
In addition, demand for gold in the technology sector rebounded by 10% year-on-year, driven by the artificial intelligence boom in the electronics sector.
On the supply side, mine production rose 4% year-on-year to 893 tons – a record high in the first quarter. Remanufacturing also reached the highest level since the third quarter of 2020, jumping 12% year-on-year to 351 tons, with some investors seeing the high price as an opportunity to take profits.
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