According to the latest data, purchases for weddings, festivals also increase demand
Sales of gold jewelry in the UAE grew at the fastest pace in the Gulf region amid improved sentiment and shopping during the holiday and wedding season.
According to the latest data from the World Gold Council (WGC), demand for yellow jewelry across the country increased by 80% in the second quarter to 13.2 tons, which is the highest among the countries in the Gulf region.
In Saudi Arabia and Kuwait, demand also increased by 22% and 24%, respectively. In general, the demand for gold jewelry in the Middle East increased by 24% to 47.3 tons.
According to the WGC, rising oil prices have boosted sentiment among gold consumers in the Middle East. The second quarter also saw "healthy" purchases for weddings and festivals among Indian consumers, who make up a huge proportion of expats in the UAE.
Global jewelry consumption, however, increased slightly by 4% and amounted to 453 tons due to declines in China and Russia.
According to the WGC, global demand remains "anemic" in the long term, which is 10% lower than the five-year quarterly average of 505 tons.
In the first half of the year, total demand amounted to 928 tons, which is 2% less than in the first half of 2021. Demand during the first half of the year was also 12% below the level that existed before the pandemic in 2019.
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