Dubai Multi Commodities Centre said that gold trade through Dubai reached $7 billion in the first quarter of 2008, up by 73 percent during the same period in 2007.

Dubai’s gold trade has witnessed consistent growth over the last six months, registering a 42 percent increase over the fourth quarter of 2007, when it reached $4.96 billion, DMCC said. Gold price averaged $925 per ounce during the first quarter of 2008.

According to figures compiled by the Statistics Department of Dubai World, a total of 115 tons of gold was exported from Dubai in the first quarter of 2008, an increase of 74 percent from the corresponding period in 2007, and 49 percent higher than exports during the last quarter of 2007. Gold exports from Dubai recorded 66 tons in the first quarter of 2007, rising to 77 tons in the fourth quarter of 2007.

In addition, 122 tons of gold was imported into Dubai during the first quarter of 2008, with imports mostly comprising scrap and jewelry. With a quarter-on-quarter comparison, this figure is an increase of 14 percent from 107 tonnes in the fourth quarter of 2007, although imports have recorded an eight percent decrease from 132 tons for the first quarter in 2007.

“With global gold prices crossing the $1000 mark and remaining significantly high throughout 2007, there has been an impact on the volume of imports into Dubai,” said Ian McDonald, executive director - Gold and Precious Metals, DMCC. “However, in keeping with global trends, gold refining has also been on the rise. With scrap becoming an important component of imports, the Emirate’s growing significance as a gold refining centre has been further emphasized. In addition, increasing export volumes of gold bullion have given a boost to Dubai’s role as a leading physical hub for the regional gold trade.”