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ÿ<Picture><Picture>Full story FOCUS-Dubai gold imports reach new record
04:11 a.m. Dec 23, 1997 Eastern
DUBAI, Dec 23 (Reuters) - Dubai imported a record 66.9 tonnes of gold in November as buyers from the Indian subcontinent and Gulf states took advantage of falling bullion prices, Dubai customs data released on Tuesday showed.
The November figure was 88 percent higher than November 1996 import levels and a step up from the 55.1 tonnes imported in October, the Dubai-division of the World Gold Council (WGC) said in a statement based on the customs statistics.
In the first 11 months of the year, Dubai has imported a total of 595.6 tonnes of bullion -- mainly from Switzerland, Britain and South Africa -- compared to 318.5 tonnes in the corresponding period last year.
Weaker bullion prices coinciding with the start of the Indian wedding season and the harvest of the winter crops were the major factors behind the rising appetite for gold, local traders said.
Dubai is the main feeder market into India which is the world's largest consumer of the yellow metal.
''The bargain price of gold has prompted both retail investors and jewellery consumers to buy their metal of choice - gold. This is evident from the rise we have been observing in the demand for small bars and coins,'' D.V.Pathy, WGC's manager for Gulf states said.
Gold prices fell to 12-year-lows in November, falling below $300 an ounce on repeated fears of central bank and producer selling. Bullion reached highs of $380-85 in November 1996.
''Month after month this region is showing a reinforcement of its confidence in gold...every week we see reports from Western experts who talk of a lack of buying motivation for gold. Obviously they are not even considering these figures,'' said Rolf Schneebeli, WGC's Middle East and India head.
''Since 1994, this region has been showing a consistent rise in gold demand,'' he said in a WGC statement.
Growing demand from Iran and Egypt was also helping turnover.
Schneebeli largely dismissed the threat of a change in Indian import rules which some traders and analysts expect to lead to a reduction in gold imports into Dubai as Indian firms secured their requirements directly from producers.
''The Council has maintained that the immediate impact of India's liberalisation would be minimal. November's figures demonstrate just that...Dubai's role as a supplier therefore cannot be affected in one stroke,'' he said.
India in October further liberalised its bullion import policy by allowing three state-run agencies and eight banks to freely bring in gold and silver and sell the metals locally.
Dubai's main suppliers so far this year have been Switzerland at 401.3 tonnes, Britain at 127.4 tonnes and South Africa at 47.8 tonnes. |
