India imports nearly 18 tonnes gold in May

India's gold imports stood at about 18 tonnes in May, nearly two tonnes less than that in April, on account of high prices and low demand in domestic markets.

"Gold imports stand at 17.8 tonnes in May, 2009," Bombay Bullion Association President Suresh Hundia told PTI from Mumbai.

Even as prices has come down from Rs 15,000 per 10 grams-level, it is still ruling over Rs 14,500, impacting the demand negatively.

Gold prices today ruled at around Rs 14,700 in Spot markets across the country. The MCX August gold was today trading at Rs 14,462 per 10 grams and in global markets it was at $933.80 an ounce (28.34 grams).

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.

Gold imports have been sluggish so far this year and was at 39.6 tonnes during January-May 2009, compared to 115 tonnes in the same period last year, Bombay Bullion Association data revealed.

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

SMC Global's Rajesh Jain said, gold is currently in a bearish mode due to rising dollar index and if prices breaches the Rs 14,400 level there might be a sharp fall.