World Gold Council issued its first report for the year 2008 Announced the regional office of World Gold Council in Dubai, the value of retail gold sales increased about 15% as it increased from 2.7 billion dirhams in the first quarter of 2007 to reach AED 3.1 billion in the same period this year. Saudi Arabia has also increased sales with an estimated increase of 7%. The performance of the Egyptian market was distinct, as the high sales reached 64%. Soaring price of gold in the first quarter of this year was the main factor for the decline in demand for gold in the world. Region-wide decline by 19% in the United Arab Emirates, 25% in Saudi Arabia and 30% in the rest of the Gulf. Exception to this decline in the region was the share of the Republic of Egypt, where the demand for gold rose 15% to up to 18 tons in the first quarter of 2008. The increase in gold price is a positive impact on the jewelry sector and investment in the gold market where increased demand of consumers to buy gold jewelry and gold investment in the belief that the price of gold will rise more in the coming period. It should be noted that the volatility of gold prices to rise and had a significant impact on the world markets for the yellow metal in the first quarter of 2008 and this seemed evident in the markets of India, the largest market for gold jewelry in the world, continued low demand for up to half the amount due to fluctuating price of gold. In a commentary on Mr. / Moaz Barakat, CEO of World Gold Council, Middle East, Turkey and Pakistan, said: "Despite the decline in tons of gold consumption in the first quarter of this year, the gold is a safe haven for many investors at the time of instability, inflation and the devaluation of U.S. dollar . the increasing demand for investment gold led to a rise in demand in this sector by 22% from 1.9 tons in the first quarter of 2007 to 2.3 tons in 2008. We are convinced that the demand for gold from investors will continue in the near future as well as consumers demand jewelry gold to buy more in the stability of a possible prices. " One of the factors that had an impact on the performance of the markets of the Middle East is the change in the later events such as the Islamic Hajj and Eid al-Adha, who participated in a greater demand for gold at the beginning of 2007, unlike 2008. It is expected that more active markets in the region in the second quarter of this year in the event of price stability. The demand for gold jewelry of 22 carat during the season of "Lakshya Traetea" Indian recorded a remarkable rise over the previous year and this indicates a continuing passion for the consumer of this yellow metal.
