Gold imports may dip by 18% to 28 tonnes in Feb

Gold imports may decline by nearly 18 per cent to around 28 tonnes in February compared to the previous month, a top official of the Bombay Bullion Association (BBA) said today.

"Gold imports are likely to be at 27-28 tonnes in February," Bombay Bullion Association Director Suresh Hundia told PTI. The imports were 34 tonnes in January, according to the BBA data.

A SMC Global analyst said that in February gold prices recovered marginally affecting negatively the shipments.

Gold touched a high of $1,166.70 an ounce (28.34 grams) against 1,131.50 an ounce in the global markets in February. In the domestic market, the precious metal touched a high of Rs 17,104 per 10 grams in February compared to Rs 16,889 in January.

In January, gold import had surged as prices ruled at Rs 16,500-17,000 levels in January after record Rs 18,500 per 10 grams level in December 2009, Hundia said.

Currently, gold is trading at Rs 16,620 on the Multi-Commodity Exchange for April contract, while in local markets it is available at around Rs 16,750. However, in the global markets, it is at $1,114.72 an ounce.

The imports, Hundia said, are likely to decline further during March as the government has hiked customs duty by Rs 100 per 10 grams in the Budget 2010-11 from Rs 200 per 10 grams.