High prices hit gold market; zero import in Feb

India might be the biggest importer of gold, but it has not shipped in the precious metal in February as demand has slumped due to record high prices.

"There was no gold import during February in the absence of any demand due to high prices. Moreover, there is no fresh buying in the market as people are selling old jewellery to book profit," Bombay Bullion Association Director Suresh Hundia told PTI.

Gold prices ruled at Rs 15,365 per 10 gm in the Delhi spot market.

Imports stood at 23 tonnes in February 2008. Buying from the overseas market stood at 1.8 tonnes in January this year.

In the futures market also, gold was trading at Rs 15,378 per 10 gm for April contracts.

According to brokerage firm Bonanza Head Commodity Research Tarun Satsangi, the metal had touched its peak for the time being and the price is likely to come down to Rs 13,550 per 10 gm.

In the international market gold is likely to come down to $947 an ounce (28.35 gm), he added.

Though prices are expected to come down, jewellery demand is unlikely to improve as the peak season is coming to an end. Traditionally, people buy gold jewellery from October to March, which overlaps with the wedding season, and jewellers this time have not seen hectic buying as prices were ruling at all-time high levels.