You are here: Home » Markets » Commodities » Precious Metals
Business Standard

India's gold imports fall 39% in April on weak demand, says GFMS

Lower gold imports could also help the South Asian country reduce its trade deficit

Reuters  |  Mumbai 

Gold imports may fall 25% in October -December

India's imports fell for a fourth straight month in April from a year ago to 57 tonnes on subdued demand after local prices jumped to the highest level in nearly 21 months, provisional data from consultancy and dealers showed.

The drop in purchases by India, though, could weigh on global prices, which are still up nearly 6 percent from a mid-December trough, despite dropping back from a 17-month high hit at the end of January.

Lower imports could also help the South Asian country reduce its trade deficit.

The price rise curtailed and also prompted jewellers to postpone re-stocking, Sudheesh Nambiath, a with GFMS, a division of Thomson Reuters, said on Tuesday.

Local prices jumped to their highest in 21 months in April following gains in the overseas market.

The drop in the rupee to the lowest level in 14 months in April made gold even more expensive for and squeezed demand, said Abhishek Bansal, promoter of ABans Jewels Pvt. Ltd, which runs a gold refinery.

India imported 93.6 tonnes of gold in April 2017. in the January to April period fell 34 percent from a year ago to 220.1 tonnes, data compiled by showed.

In April, Indians celebrated the annual festival of Akshaya Tritiya, during which buying of gold is considered auspicious.

"Price rise weighed on Akshay Tritiya demand," said a

India's imports in May would be higher than April, but would be significantly lower than the 119.3 tonnes imported in May 2017, said a Mumbai-based head of the gold trading desk at a private bullion importing

"Slowly, consumers and jewellers are adjusting to higher prices. Wedding season demand is also good," the official said.

Gold is an essential part of a bride's dowry in India and also a popular gift from family and guests at weddings.

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, May 08 2018. 21:19 IST
RECOMMENDED FOR YOU