Gold imports may cross 1,000 tonne in 2011: WGC

Gold imports, which stood at 553 tonne for the January-June period, could cross the 1,000 tonne mark this year amid strong demand, World Gold Council (WGC) today said.

"The first half performance was very strong and if this trend continues and Q3 imports reaches 170-180 tonne and Q4 around 250 tonne, then may cross the 1,000 tonne mark this year," WGC Managing Director, India and Middle East, Ajay Mitra said.

The total gold imports in 2010 was 958 tonne.

Inflationary pressure is likely to continue along with volatility in the equity markets, which will make gold attractive for investors looking to diversify their portfolios and protect their wealth, he said.

Meanwhile, WGC is planning to launch a generic campaign for the precious metal during the festive season, which will further boost the demand, he said.

Talking about buying trend in Q3, Mitra said, the trend of buying little bit of gold like coins is likely to continue.

"People purchasing small amount, like coins, more often will continue in Q3. However, due to the wedding season and festivals, the demand for heavy jewellery will be more," he added.

Jewellery consumption increased by 43 tonne in the first six months of this year at 346 tonne compared to 303 tonne in the same period last year.