Abu Dhabi retail gold sales hit 2009 low

Abu Dhabi: Higher prices and low buyer turnout in August saw retail gold sales plummeting by 40 per cent in Abu Dhabi, the worst sales this year, retailers said Thursday.

Prices of the yellow metal have been boosted by institutional funds seeking a safe haven for their assets during the global economic crisis.

The average price of 22 carat gold in August was Dh107 a gram compared with Dh82 in August last year and Dh105 in July this year.

"The market was very bad last month, almost 40 per cent down. It is always like this because it is holiday month with no buyers," said Tushar Patni, director of Ajanta Jewellers.

"Gold prices were also higher and usually during Ramadan we see less buying. Last year was an exception because in August prices were really low," he said.

The average price of gold in August last year was Dh82 per gram. Expatriates go on annual holiday in July and August.

"Jewellery sales were poor, we expected that. But gold became expensive and those who wanted to buy must have postponed purchases," said the manager of Joy Alukkas Jewellery that has three outlets in Abu Dhabi.

Sales are expected to be flat in September if prices continue to be on the high side said Patni. Price of gold touched Dh110 a gram yesterday.

Spot gold has risen by more than a quarter to about $980 (Dh3,600) an ounce yesterday from a low of $773.90 in August last year. In October it dipped to a one-year low of $680.80.

Retail gold prices move in line with spot prices that have eased slightly this year as investors switched from gold to equities due to the recovery in stock markets.

Tax-free jewellery in the UAE's gold souqs and shopping malls draws Gulf, Arab, Asian and western tourists.

Abu Dhabi has some 85 gold shops and its own jewellery manufacturers. Imports, however, make up almost 60 per cent of all jewellery sold at retail outlets.

Facebook twist: Friending -- for a fee

On Facebook, most people make friends the old-fashioned way -- by sending a request to be added to someone's posse of pals. Now, an Australian marketing company hopes to save you time by buying you a few thousand buddies.

The service from uSocial is mostly meant for businesses, celebrities and other individuals looking to expand on the social network, and Facebook isn't happy.

Under the service, which launched this week, adding 1,000 new Facebook friends costs less than $200. For 5,000 Facebook friends -- the maximum allowed by that site -- uSocial charges $727, though through mid-September, the promotional rate is $654.30.

The service can also help companies accumulate fans -- Facebook-speak for the users who acknowledge liking a person, business or idea on the site.

Leon Hill, the 24-year-old founder of Brisbane, Australia-based uSocial, said businesses and other clients are essentially buying a base of potential customers. USocial logs into a client's Facebook profile or creates a new one. It seeks out people who would be a good fit -- like car buffs if uSocial is trying to promote an auto-parts company -- and sends them friends requests tailored to that business. The requests don't mention that uSocial is working on behalf of the business.

Facebook spokesman Barry Schnitt said that giving others access to your Facebook account goes against the site's policies, as it makes Facebook less secure and detracts from the site's culture of authenticity.

Gold hits 6-month high, nears US$1,000 an ounce

NEW YORK: Gold prices bounded higher Thursday, nearing the US$1,000 mark for the first time since February.

Other metals followed gold higher. Energy futures wavered, while grains slipped. Gold for December delivery jumped $19.20, or 2 percent, to $997.70 an ounce on the New York Mercantile Exchange, after earlier hitting a six-month high of $999.50.

Prices have added about $44, or 4.6 percent, over the past three days, breaking free from two months of wayward trading between $930 and $970 an ounce.

Silver prices, which have trailed gold this year, got a boost as well.

December silver soared 6 percent, rising 92.5 cents to $16.29 an ounce, after earlier hitting $16.31, its highest point since August 2008.

Silver prices have surged more than $2, or 14 percent, in just five days.

Analysts say a number of bullish factors have converged to benefit gold, and are likely to take it past the $1,000 mark in coming days.

The surge in gold is a sign of how jittery investors have become.

The rise this week coincided with a pullback in stocks as investors worry that a six-month rally of as much as 50 percent has overshot the economy's recovery.

Stocks drifted Thursday after posting four days of losses.

At the same time, September is historically a strong month for gold, partly because it precedes the wedding season in India, when jewelry demand typically picks up.

Technical factors are also driving the advance and momentum has been building as the metal manages to hold above its previous trading range.

"This is telling you that the bull case for equities that a lot of people have been skeptical about has run it's course and a lot of people are putting more money in gold to balance their portfolios," said Adam Klopfenstein, senior market strategist at Lind-Waldock, a futures brokerage.

Klopfenstein also said trading volume was light ahead of the long Labor Day weekend, which can exaggerate moves in the market.

Elsewhere on the Nymex, October platinum rose $23.70 to $1,253.80 an ounce. Palladium rose 1.8 percent.

December copper futures rose 3.9 cents to $2.8650 a pound.

Oil prices wavered throughout the day, mirroring the seesaw trade in stocks.

Light, sweet crude for October delivery fell 9 cents to settle at $67.96 a barrel on the Nymex.

In other Nymex trading, gasoline for October delivery lost 1.58 cents to settle at $1.7928 a gallon and heating oil fell by 1.55 cents to settle at $1.735 a gallon.

Natural gas lost 20.7 cents to settle at $2.508 per 1,000 cubic feet.

Prices dropped as low as $2.50 per 1,000 cubic feet, the lowest since March 2002, after the government reported that supplies grew again last week and are now nearly 18 percent above the five-year average.

Grain prices posted modest losses on the Chicago Board of Trade.

December wheat futures shed 7 cents to $4.7875 a bushel, while December corn lost 3.5 cents to $3.1575 a bushel.

November soybeans fell 9.5 cents to $9.4150 a bushel.