UAE: Gold sales up as Dubai Gold and Commodities Exchange set to open

Gold sales in the UAE went up by 26 percent to hit Dh1.4 billion ($381.2 million) in the third quarter of 2005 compared to the same period last year, the World Gold Council (WGC) reported, according to Gulf News.

Gold consumption by weight posted a 15 per cent increase in the same period.

Gold jewellery sales rose by 13 percent from 18.4 tons in the third quarter of 2004 to 20.8 tons during the same period this year.

These figures were published as Dubai is set to launch its first gold futures contract. Dubai boasts 500 tons of gold jewellery traded within it each year and this week will see the first gold futures contract launched on its electronic exchange, reported the Financial Times.

The Dubai Gold and Commodities Exchange (DGCX) will receive a 1kg gold futures contract when it opens on Tuesday. It is reported that many gold dealers are awaiting the DGCX's opening, which it is hoped will bolster Dubai's gold trade.