Gold imports likely to be nil in March

For the second month in a row, there would be hardly any gold import in March due to slump in demand following high prices of over Rs 15,000 per 10 grams level, experts have said.

"Gold import during March is going to be almost zero due to absence of any demand because of high prices. If there is reduction in price, we may witness some imports," Bombay Bullion Association Director Suresh Hundia told PTI.

In February, there was no gold import at all, while it stood at 21 tonnes in March 2008 and at 23 tonnes in February last year.

Hundia said, unless gold prices comes down to Rs 13,500 per 10 grams level, there will be no demand to support import.

Gold today declined by Rs 50 to Rs 15,200 per 10 grams level in the spot markets from its previous day's close.

Hundia added, if the prices continues to remain at such high levels, even the coming festive season will not be able to boost demand for the precious metal.

Experts feel, the better performance of equity markets, which has gained 7.19 per cent or about 600 points during the last three trading sessions, might pull down prices.

Gold prices is likely to remain at high level for 4-5 months before coming to Rs 13,500 per 10 grams level, Bonanza Commodity Brokers' Assistant Vice-President (Commodity Research) Tarun Satsangi said.

The prices will start declining once the equity market sustains the current upswing momentum, which will encourage investment to shift from the yellow metal to the stocks, he added.

When the stock and other investment options fail to perform, investors shift their funds to gold, which is considered to be a safe haven.

On MCX, April contract for gold was trading at Rs 15,190 per 10 grams, down 0.01 per cent.