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Gold jewelry hits low for the fourth consecutive year

Gold– what attracts women and is a good source of investment and business. Or is it?

The demand for the gold jewelry in the UAE has hit a low for the fourth consecutive year. It has fallen to a 20% low according to a report.

“Demand in the UAE received a small boost in December as consumers rushed to make their purchases before a 5% Value-Added-Tax (VAT) was imposed in January. But the 16% year-on-year gain in Q4 demand failed to rescue the market from a fourth consecutive annual decline: 2017 demand was down to 2% to a 20-year low of 42.8 tonnes,” the Council said.

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Globally, the demand for gold rose in the final months of 2017, gaining 6% year-on-year to 1,095.8 tonnes in Q4. But compared to the full year demand, it fell by 7%to 4,071.7 tonnes.

According to World Gold Council, full-year gold jewelry demand increased by 4% to 2,135.5 tonnes – the first year of growth since 2013.

India and China led a 4% recovery in jewelry, although demand remains below historical averages. India’s 12% year-on-year improvement was partly due to a very weak 2016. Demand fluctuated on changes in tax and regulations.

Increased use of gold in smartphones and vehicles sparked the first year of growth in technology demand since 2010.

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