Gold import may fall by 44% in June

India's gold import may fall by about 44 per cent to 10 tonnes in June over the previous month due to high prices and low demand for the precious metal in the domestic markets, experts have said.     

Gold import stood at 18 tonnes in May, according to the data provided by the Bombay Bullion Association.     

"Gold imports in June will be about 10 tonnes as the demand has slowed down following high prices. Unless the prices come down, there will be no improvement in imports," Bombay Bullion Association Director Suresh Hundia told PTI.     

Gold prices ruled over Rs 14,600 per 10 grams level in both spot and futures markets last week. In the international markets, gold prices were at 938.55 an ounce (28.34 grams).     

The import of gold has been sluggish so far this year and is estimated at around 50 tonnes during the January-June period against 139 tonnes of gold shipments into the country in the corresponding period of 2008.     

There were no imports in February and March owing to absence of demand in the domestic market following high gold prices, which ruled over Rs 15,000 per 10 grams level.     

In April, India imported 20 tonnes of gold due to rise in demand for 'Akshaya Tritiya' — a festival which is considered auspicious to buy the precious metal. 

On gold price outlook for this week, brokerage firm SMC Global's Rajesh Jain said the metal is likely to consolidate at current levels to trade in the Rs 14,400-14,800 per 10 grams range due to volatile movement in dollar index with a slightly downward bias. Dollar index was 0.42 per cent down from its last trading day.     

In the international markets, gold prices are likely to rule in 930-950 an ounce range, Jain added.     

Another market analyst opined that global equity markets are looking tired and if they weaken further this week, it will give boost to the prices of the precious metal.