Gold imports may touch 40 tonnes in Sept

Gold imports are likely to increase two fold in September at 40 tonnes compared to last month due to spike in demand ahead of Diwali and the ongoing marriage season.

"The imports are likely to be around 35-40 tonnes in September," preliminary data given by the Bombay Bullion Association said. The import was 54 tonnes during September 2008.

The rise in imports has been due to festival season demand, starting with 'Durga Puja' and 'Navratras' and will be followed by 'Dhanteras', 'Diwali' and the marriage season, Bombay Bullion Association Director Suresh Hundia said.

He said the is more for gold coins than for retail jewellery.

"This year the investment demand went up even as gold crossed the Rs 16,000-per 10 grams level twice, as people expected the prices to go up further," he pointed out.

Gold imports have been sluggish so far this year and were at 81.2 tonnes during January-August 2009, compared to 261 tonnes in the same period last year, according to the Bombay Bullion Association data.

In January, only 1.8 tonnes of gold was imported followed by no imports during February and March due to lack of demand on high prices following recessionary pressures.

Gold imports had touched 20 tonnes in April, on account of 'Akshaya Tritiya', a festival considered auspicious for buying gold.