July 12, 2006	Wednesday	Jumadi-ul-Sani 15, 1427

LONDON, July 11: Turkish gold jewellery demand rose in the last two months due to lower and steadier world prices and the revival is seen continuing in the second half of the year, Turkey's leading jewellery retailer said on Tuesday.

Cetin Binatli, board member of Goldas , Turkey's only listed gold jewellery producer, told Reuters that demand, which shrank about 40 per cent in the first four months, increased by some 20 per cent in May and June.

Due to the high and volatile world prices, in the first four months of the year, demand for jewellery was really very weak. But prices then fell and stabilized and we saw a significant revival in demand in May and June, Binatli said. Spot gold

prices surged to a 26-year peak of $730 an ounce in mid-May, but have now fallen to about $620.

Binatli said the wedding and tourism season also helped to boost sales. Gold coins and jewellery are traditional gifts at Turkish weddings.

The performance in the fourth quarter is very much related to world prices...I do not expect (gold) prices to rise sharply again so I do not think that the revived demand will be hit, Binatli said.

The United States is Turkey's biggest export market and end-of-year sales often compensate for a weaker performance earlier in the year.—Reuters