December 31, 2002	Tuesday	Shawwal 26, 1423

DUBAI, Dec 30: Demand for gold jewellery in Dubai is likely to remain tepid in January despite an annual shopping festival because of high prices and concerns over a possible US-led war on Iraq, traders said on Monday.

“Even though the Dubai Shopping Festival starts in January, we expect business to be slow because high gold prices make shoppers hesitant and people also worry about the regional situation,” one trader said.

“Trading has been slowing down, and I don’t really think that will improve in January, especially because customers want to see where prices are going,” another trader said.

Traders quoted Dubai’s 10-tola (TT) bar on Monday at between 4,777 dirhams ($1,301) and 4,790 dirhams, up from about 4,389 dirhams a month ago. A TT bar is 3.746 ounces of 24 carat gold.

Safe-haven gold maintained its lustre on Monday as war fears and renewed dollar weakness kept bullion close its firmest level in nearly six years.

“A lot of people in this region have a set budget for gold, so if prices go up they’ll just buy less of it,” a trader said. “But tourists are less affected by prices and there are usually more of them during the Shopping Festival.”—Reuters