The outlook for gold remains bullish and with the global economy going through fluctuations, gold will be highly sought after as an investment and the ultimate time-tested safe haven, said a leading industry expert.

Tarek El Mdaka, MD of Dubai-based Kaloti Jewellery Group, an integrated gold and precious metals company with international presence in the physical commodity markets, said that the gold rally is expected to continue within a $800-1200 trading range this year, in the lead up to the Seventh Dubai City of Gold Conference to be held in the emirate.

The one day international conference for the gold and jewellery industry is scheduled for May 2 at the Almas Tower and will have a strong focus on gold bullion and investment.

“With bullion forming majority of the gold and jewellery business globally and with growing interest in gold as an investment, it is only fitting that the conference is focused on this sector,” Tarek El Mdaka added.

“At the peak of the banking crisis, there was concern about holding money in banks which led to an increase in the sale of gold bars and coins. Even though this fear is waning, there is still turmoil in the financial markets causing investors to diversify their portfolio. This trend is also reflected in the increasing interest in Gold Exchange Traded Funds globally. It is a healthy sign for the bullion market.”

“In view of the existing economic crisis facing the world, gold makes a perfect safe haven for investors. Accordingly, demand for gold is expected to rise significantly over the next few months. Short gold supply will remain unchanged or drop. As such, high price will be a main feature of the future gold market. Investors will certainly increase the gold component in their investment portfolios,” added Mohamed Hassan O. Elzubeir, general manager, Al Ghaith Gold DMCCA.

Al Ghaith Gold DMCC is a precious metals refinery operating under the Dubai Multi Commodities Centre Authority.

“Dubai refineries have benefited from the steadily rising gold prices which lead to increased supply of scrap gold. Our production volumes have nearly doubled over the past two years of operation. In 2008 our total production volume was 34 tons while 2009 figure was 60 tons. The first quarter of 2010 saw a slowdown in the business due to drop in gold prices,” he added.

Key international speakers will present and debate the future of gold bullion and investment at the event. The discussions will be led by Paul Walker, chief of GFMS Ltd; Michael Mesaric, CEO of Valcambi SA; Walter de Wet, head, Commodities Research, Standard Bank; Stewart Murray, chief executive, LBMA; and Raymond Key, global head of Metals, Deutsche Bank.

A highlight of the event is the unveiling of the results of a survey by World Gold Council on developing the gold investment sector.

Over 300 delegates comprising industry leaders, retailers and bankers from local and international markets and representatives from the Government of Dubai are expected to attend the event.-TradeArabia News Service