The rise in gold prices, which touched an absurd $900 an ounce increasing by almost 32%, has deflated the interest of customers in Dubai to purchase gold. The sale of gold jewellery fell by 14% in 2007. Last Friday, gold prices reached a lifetime high of $898.30 an ounce. This was coupled with the rising geopolitical tensions in the Middle East, soaring oil prices, and the uncertainty of the U.S. Federal Reserve about a cut in interest rates to avoid economic recession, causing the dollar to weaken further and increasing the appeal of gold as a safe investment.%%According to Dubai Gold and Jewellery Group managing director, Tawhid Abdullah, “The market was going really well most of the year, but the high prices we started to see in the last quarter drove buyers away. Gold jewellery sales in the emirate fell 20% in December and 30% in the fourth quarter”. He also told Reuters that “It is normal for buyers to stay away from the market when prices are volatile, but 2008 is expected to see a more stable market.”