Latest news with #AndrewNaylor
Gulf News
03-05-2025
- Business
- Gulf News
Dubai gold rate is down near Dh7 this week - that's good for tourists
Dubai: For this weekend's shoppers, the Dubai Gold Rate is lower by just under Dh7 on a gram basis, at Dh362.5 for a gram of 22K (and Dh391.75 for 24K.) That's quite a sizable price drop in times when gold has consistently been pushing the ceiling in reaching for new highs. Potential shoppers will feel a bit disappointed in that the price drop was not by a bigger margin – at several points it did seem that the Dubai gold rate could close the week at around Dh357-Dh358 a gram. But, as jewellers say, there is always another week for things to change. Latest gold and remittance rates in UAE Even then, a near Dh7 a drop will find favour with tourist-shoppers, and there have been many in recent days. 'The UAE resident-shoppers dominated on April 30's 'Akshaya Trithiya', and now most of them will stay on the side-lines until they see a bit more of the price drop,' said a jeweller. 'But Dubai and UAE still has a sizable number of visitors/tourists – we are counting on them to keep the gold trade busy in the coming days.' More 'focused' jewellery designs The time has also come for UAE's gold retail sector to come up with more jewellery design options. Andrew Naylor is the Middle East and Public Policy head at World Gold Council. He reckons that the Dubai gold business is sitting on a potential gold mine of an opportunity. 'In Dubai, you've got a big and growing Chinese resident base,' said Naylor. 'They historically prefer 24K jewellery, heritage products, slightly lighter weight options now. 'Then there are the visitors to Dubai/UAE from Europe and further afield – and they come with different preferences on their choice of gold. 'There is a real opportunity for jewellers in the UAE to diversify their designs and options without neglecting their core customer base. If they do tap a more international buyer set, that could mean more growth down the line.' In fact, there had been talk of some Chinese retailers wanting to get into the local market. The UAE's existing jewellers have also 'experimented' with how they can do better in selling to new buyers coming to Dubai/UAE – whether as visitors or residents. (There is a telling anecdote about how one of UAE's biggest master-developers recorded Dh1 billion in sales of homes to Chinese investors last year – and reached the same tally of Dh1 billion in the first three months of 2025 alone…)
Gulf Business
02-05-2025
- Business
- Gulf Business
Gold demand rises 1% in Q1; ETFs surge, prices hit record highs: WGC
Image: Getty Images Global gold demand rose 1 per cent year-on-year in the first quarter of 2025 to 1,206 tonnes, driven by a sharp increase in investment demand as prices surged past $3,000 per ounce, according to the World Gold Council's (WGC) latest The rebound in gold-backed exchange-traded funds (ETFs) was the standout driver, with investment demand more than doubling to 552 tonnes — up 170 per cent year-on-year and the highest level since Q1 2022. ETF inflows alone reached 226 tonnes, boosted by price momentum and rising global uncertainty linked to tariff policies and recessionary fears. 'Over the past 10 months investors have returned to gold ETFs, ramping up their allocations since Q3 last year,' said Louise Street, senior markets analyst at the WGC. 'Already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10 per cent below their 2020 high.' Gold bar and coin demand rises Total bar and coin demand remained strong, rising 3 per cent year-on-year to 325 tonnes. This increase was largely driven by a surge in retail investment in China, which posted its second-highest quarter on record. The strength in Eastern markets helped offset a 22 per cent decline in demand from US investors and a modest recovery of 12 tonnes in Europe, albeit from a low base in Q1 2024. In the Middle East, gold's traditional appeal remained evident. 'Gold investment demand in the Middle East remained resilient in Q1 2025, underpinned by continued geopolitical uncertainty and positive price expectations,' said Andrew Naylor, head of Middle East and Public Policy at the WGC. 'Notably, Saudi Arabia saw a 15 per cent year-on-year increase in bar and coin demand, while jewellery demand in the kingdom rose 35 per cent – bucking regional trends.' Central banks continued to be net buyers for the 16th consecutive year, adding 244 tonnes to global reserves in Q1 2025. Although this was 21 per cent lower than Q1 2024, it was in line with the average quarterly purchase volumes recorded over the past three years. Jewellery demand hit Jewellery demand, meanwhile, was impacted by the record price environment, with gold hitting 20 all-time highs during the quarter. Global jewellery volumes fell to their lowest since 2020, when Covid-related restrictions curtailed demand. Despite this, consumer spending rose 9 per cent year-on-year to $35bn in Q1, as price appreciation drove value higher. All markets except China recorded increases in the value of gold jewellery demand. On the supply side, gold remained relatively flat at 1,206 tonnes. A record Q1 in mine production was largely offset by slightly lower levels of recycling. Technology demand was stable at 80 tonnes compared to the same period last year. 'It's been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of The WGC expects continued demand from institutions, individual investors, and central banks, as persistent global uncertainty enhances gold's appeal as a safe haven asset.
Gulf Insider
30-04-2025
- Business
- Gulf Insider
Saudi Arabia's Shoppers Are Picking More Gold Jewellery
Saudi shoppers are definitely not holding back when it comes to gold jewellery purchases. Even when their counterparts in the rest of the world are going light on buying jewellery because of the never-before-seen price gains in the year-to-date. It also meant that last week gold surged to $3,500 an ounce. (Currently, it is at $3,313.) In fact, during the first three months of 2025, Saudi shoppers 11.5 tonnes of jewellery, which is a staggering 35% up on the 8.5 tonnes in Q1-2024, according to the latest global market update from World Gold Council. In comparison, shoppers in the UAE picked up 7.9 tonnes of gold jewellery in Q1-2025, down 11 from the 9.6 tonnes a year ago, 'Saudi Arabia's had robust growth on the economic front and that's being reflected in the positive consumer sentiments,' said Andrew Naylor, Head of Middle East and Public Policy at World Gold Council. 'That bullish sentiment plays a key role in consumer spending, especially in the jewellery market. 'That's probably the main reason why Saudi gold consumers bucked the global trend in jewellery demand.' Saudi Arabia's had robust growth on the economic front and that's being reflected in the positive consumer sentiments Andrew NaylorHead of ASEAN Markets and Public Policy at World Gold Council Over and above the gold price and making charges, Saudi Arabia also has a 15% VAT. Unlike in the UAE, Saudi gold and jewellery demand mostly derives from its domestic consumers. 'Yes, Saudi Arabia is less internationally exposed to the tourist trade,' said Naylor. 'But when you look at similar markets such as Kuwait, they too had a decline in jewellery spending.' There was a 21% drop in global demand for gold jewellery in Q1-2025 to 380.3 tonnes from 480.1 tonnes, with Chinese buyers pitching in with 125.3 tonnes (184.4 tonnes in Q1-24). Indian shoppers helped out with 71.4 tonnes against 95.5 tonnes a year ago. 'The headline-grabbing gold price rise dominated the jewellery sector in Q1 causing a notable decline in global volumes through its impact on consumer affordability,' says the World Gold Council report. 'But the value of Q1 gold jewellery consumption increased 9% to $35 billion. Value growth was seen in every market except China, suggesting that consumers were prepared to stretch their budgets.'
Gulf News
30-04-2025
- Business
- Gulf News
Saudi Arabia's shoppers are picking more gold jewellery
Dubai: Saudi shoppers are definitely not holding back when it comes to gold jewellery purchases. Even when their counterparts in the rest of the world are going light on buying jewellery because of the never-before-seen price gains in the year-to-date. It also meant that last week gold surged to $3,500 an ounce. (Currently, it is at $3,313.) In fact, during the first three months of 2025, Saudi shoppers 11.5 tonnes of jewellery, which is a staggering 35% up on the 8.5 tonnes in Q1-2024, according to the latest global market update from World Gold Council. In comparison, shoppers in the UAE picked up 7.9 tonnes of gold jewellery in Q1-2025, down 11 from the 9.6 tonnes a year ago, 'Saudi Arabia's had robust growth on the economic front and that's being reflected in the positive consumer sentiments,' said Andrew Naylor, Head of ASEAN Markets and Public Policy at World Gold Council. 'That bullish sentiment plays a key role in consumer spending, especially in the jewellery market. 'That's probably the main reason why Saudi gold consumers bucked the global trend in jewellery demand.' Over and above the gold price and making charges, Saudi Arabia also has a 15% VAT. Unlike in the UAE, Saudi gold and jewellery demand mostly derives from its domestic consumers. 'Yes, Saudi Arabia is less internationally exposed to the tourist trade,' said Naylor. 'But when you look at similar markets such as Kuwait, they too had a decline in jewellery spending.' How did rest of the world fare on jewellery? There was a 21% drop in global demand for gold jewellery in Q1-2025 to 380.3 tonnes from 480.1 tonnes, with Chinese buyers pitching in with 125.3 tonnes (184.4 tonnes in Q1-24). Indian shoppers helped out with 71.4 tonnes against 95.5 tonnes a year ago. 'The headline-grabbing gold price rise dominated the jewellery sector in Q1 causing a notable decline in global volumes through its impact on consumer affordability,' says the World Gold Council report. 'But the value of Q1 gold jewellery consumption increased 9% to $35 billion. Value growth was seen in every market except China, suggesting that consumers were prepared to stretch their budgets.'
Malay Mail
22-04-2025
- Business
- Malay Mail
In Dubai's Gold Souk, bullion's record run brings little joy for jewellers
DUBAI, April 23 — In the bustling Gold Souk in Dubai, dubbed the 'City of Gold', 22-karat gold jewellery is a traditional favourite for weddings, religious celebrations, and as a family investment. Yet with bullion prices hitting record highs above US$3,400 (RM14,909) an ounce, there are signs of change, as buyers look to diamonds and lighter gold jewellery, instead. While US tariffs and other factors have added fire to already hot demand for gold as an investment, the impact is different for gold jewellery, according to Andrew Naylor, head of Middle East and Public Policy at the World Gold Council (WGC). 'In markets like Dubai, this creates a two-fold effect: on one hand, you see stronger interest in gold as a safe-haven asset, on the other, high prices dampen jewellery demand.' At Dubai's Gold Souk, retailers told Reuters they are seeing this trend, as current prices prompt shoppers to look for alternatives. 'There are no potential customers nowadays because of the gold prices,' said Fahad Khan, a sales representative at retailer Damas Jewellery. 'It's a little bit tough to afford gold, so I think it's better to go with diamonds,' said Lalita Dave, 52, as she browsed around the Gold Souk. Lab-grown diamonds Dubai has been a magnet for gold buyers for at least 80 years, starting with Iranian and Indian traders, both cultures sharing a tradition of 22-karat jewellery for adornment and investment. Yet as gold prices rose 27 per cent last year, demand for gold jewellery in the UAE fell by around 13 per cent, outpacing an 11 per cent drop globally, according to the WGC. Jewellery demand could face further pressure across key regions in 2025 if gold prices remain elevated or volatile, the WGC said in its gold demand trends report published in February. Price swings, more than price levels, are increasingly shaping consumer behaviour, particularly in India, it noted. Shifts in Indian purchasing patterns often ripple through Gulf markets such as the UAE, where buyers are a key driver of sales. Jewellery is displayed at Emirates Diamonds Jewellery, in Dubai's Gold Souq, Dubai, United Arab Emirates, April 17, 2025. — Reuters pic Goldman Sachs recently raised its end-2025 gold forecast to US$3,700 per ounce and said prices could climb as high as US$4,500. 'Higher gold prices are likely to dampen demand for jewellery, in a classic example of how the best cure for high prices is high prices,' said Russ Mould, investment director at AJ Bell. One sign of economising has been the rise of lab-grown diamonds. India exported US$171 million worth of lab-grown diamonds to the UAE in 2024, up almost 57 per cent from US$109 million two years earlier, data from the Gem and Jewellery Export Promotion Council showed. India's exports of cut and polished diamonds to the UAE in the April–November 2024 were up 3.7 per cent. UAE ranked third in global diamond imports in 2023, trade data shows, its primary trade partners including India, South Africa, and Belgium. While the UAE accounted for just 1.5 per cent of the global diamond jewellery market by revenue in 2023, it is projected to grow by 5.9 per cent annually to reach nearly US$2 billion by 2030, according to Grand View Research. That outpaces the global growth forecast of 4.5 per cent and makes the UAE the fastest growing market in the Middle East and Africa. Trade tensions One impact from recent trade tensions with the US has been accelerated talk about finding alternative markets and production hubs, two executives at major Indian diamond exporters told Reuters. If tensions persist, potentially spanning years, one of the sources speaking to Reuters on condition of anonymity said his company's contingency plans included shifting some Indian production overseas, including to the UAE. Shamlal Ahamed, managing director of international operations at retailer Malabar Gold & Diamonds, told Reuters the rise in lab-grown diamond jewellery sales in the UAE appeared to be driven more by design preferences than pricing and he remained bullish on gold jewellery demand. 'While price-conscious buyers may wait for a dip, our experience shows that such declines are often short-lived, with buyers quickly adapting to new price levels.' — Reuters
