Dubai Gold Trade Hopeful On Purchases By Nris

Dubai's gold sellers on Sunday pinned their hopes for a pick up in local retail trade on expatriates, mostly from the Indian subcontinent, returning home for summer holidays bearing gifts of jewellery and bullion.

As many of Dubai's expatriate community began to head for home or vacations abroad to escape the Gulf's harsh summer, traders expected an upturn in sales.

"Expatriates, particularly my Indian clients, are starting to buy gifts for family members. Dubai offers a good deal," a trader at one of Dubai's main jewellery houses said.

Dubai is the main feeder market into India which is the world's largest consumer of gold. Indian nationals also represent the largest resident community and expatriate workforce in the Gulf emirate.

 

Expatriate demand was expected to be supported by Indian legislation which came into effect at the start of the year which allow non-resident Indians (NRIs) to import 10 kg gold every six months at a customs rate of Rs 220 per 10 grams. NRIs were previously allowed to import only five kg.

Weaker bullion prices were also expected to help demand as the annual holiday exodus began.

A pick up in retail demand was also expected with the end of school examinations in the emirate which traditionally sees jewellery and small bullion purchases by students' families.

Indian bullion imports from Dubai were said to be steady by wholesalers, and it was supported by weaker prices. "It's ticking over but will not see any serious fluctuation until after the monsoon," said one trader.

India's June-to-September monsoon season is the prelude to the start of the country's main wedding season when imports from supply markets such as Dubai increase.

Dubai's benchmark, the ten tola bar of 24 carat gold, was quoted by traders at 4,720 UAE dirhams ($1,285) on Sunday, down from 4,755 dirhams ($1,295) a week earlier.

International spot bullion was last quoted on Saturday at $341.10-60 an ounce from $343.70-$344.20 last week.

Silver in Dubai was quoted at 620 dirhams ($168) a kilo.