ABU DHABI, Aug 3 (Reuters) - Holiday purchases and stable prices helped gold retailers in Abu Dhabi maintain sales growth in July but the market will slow in August as the summer holiday season kicks in, traders said on Monday 3 August.

"The first two to three weeks in July were very good and sales increased by about 30 percent, after that it went down," said Tushar Patni, director, Ajanta Jewellers.

"It was mainly holiday buying by expatriates, mainly Asians. Also, the price of gold averaged 104 dirhams a gram in July which was almost the same as the previous month," he said.

Retail gold sales jumped over 30 percent in June and the price of 22 carat gold averaged 105 dirhams ($28.59) a gram in that month.

Expatriates, especially Asians, comprise the majority population in the United Arab Emirates of which Abu Dhabi is the capital.

"We had very good sales in July because it is vacation time," said Lijo George, manager at Joy Alukkas Jewellery, which has three outlets in Abu Dhabi.

"But sales will be very low in August, most people are on holiday and others are returning," he said.

"We don't expect sales to be good this month, it is the lowest in the year. We have to wait till the Eid festival late September," said Patni.

Spot gold XAU= traded from a low of $909 to a high of $954.50 an ounce in July compared to $923 to $983 average in June and $930 in January this year.

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 markets 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 percent of all jewellery sold at retail outlets.

(Reporting by Stanley Carvalho, editing by Anthony Barker)