Gold sales in Dubai up during DSF but coronavirus takes shine off

Gold jewellers in Dubai reported 10-15 per cent increase in sales during Dubai Shopping Festival (DSF) with Asian going mainly for 22-karat jewellery while Europeans and millennials preferring 18-karat gold jewellery, said Dubai Gold and Jewellery Group (DGJG) on Wednesday.

But coronavirus, geopolitical tension and higher prices of the yellow metal took the shine off the gold jewellery in the second-half of the shopping festival.

"The buying trend this year recorded that 22-karat gold and diamond jewellery as usually was the popular choice amongst the Asian buyers, Europeans and millennial buyers showed more interest in 18 karat gold jewellery that adorned modern designs. Overall, the participating retail outlets marked incremental sales of 10-15 per cent throughout the DSF period despite of the geopolitical tension and spread of life-threatening coronavirus, which effected the tourist inflow in Dubai," DGJG said.

"There were some unforeseen factors that did effect the overall sales during the second half of the shopping festival, but in spite of the challenges, the end results are appreciable. Our campaign maintained continuous momentum in the retail jewellery segment and this has translated into an increase in the average value per transaction compared with what it was during the previous three months," said Tawhid Abdullah, chairman of DGJG.

"A lot of tourists from the Asian subcontinent, Arab world, and Europe were among the buyers, which is a very encouraging sign," he said.

"As a group we understand that certain factors are not controllable. Due to the steady increase in gold price, unstable weather conditions, Iran-US tension and reduction in tourist inflow due to various reasons, the jewellery sales witnessed a dip midway through the campaign. However, the total sales recorded at the end of the campaign is very promising. Even though gold price showed an upward trend through the last few weeks of the campaign, retail sales could maintain reasonable momentum due to the impressive and valuable prizes offered," said Chandu Siroya, Vice-Chairman, Dubai Gold & Jewellery Group.