GOLD jewellery sales in Abu Dhabi have lost their sparkle as sales slide 70% in January 2009.
The Emirates Industry Group says the impact of the slowing global economy on consumers has crimped spending.
Abu Dhabi Gold and Jewellery Group says a quick recovery in sales is unlikely as investors buying gold bullion as a safe haven during the downturn are supporting international prices and making the metal less attractive for retail consumers with shrinking disposable income.
Demand for gold bars was also down around 50% in the period. Prices in January averaged around 100 dirhams ($27.20) a gram, up about 1% from December.
The price of gold will affect the economy which thrives on the tourists its tax-free jewellery attracts.
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