Dubai gold demand 'to stay'

UAE Minister of Economy Eng Sultan bin Saeed Al Mansouri has vowed continued government support for Dubai's gold and jewellery industry.

The high demand and increased spending would sustain the strong gold trade in the city, he said in a keynote address at the 6th Dubai City of Gold Conference.

Mansouri said Dubai reported an almost 30 per cent increase in its gold trade despite the commodity's high price, which touched $1,000 per ounce last month, and the economic slowdown in global markets.

"Despite significant price increases, high demand and rising regional spending power will continue to sustain the strong and consistent performance of the gold and jewellery trade," he stressed.

Moaz Barakat, managing director for the Middle East, Turkey and Pakistan at the World Gold Council, an organisation of the world's leading mining companies, said the gold trade would have a sustainable growth in the long-term, despite concerns on the drop of gold sales due to higher prices.