India's gold imports may fall a third month

Gold imports by India, the world’s biggest buyer, may fall for a third month in April because of record prices, according to the Bombay Bullion Association.

Overseas purchases this month may fall to 20 tonnes to 25 tonnes, from about 50 tonnes to 55 tonnes a year ago, President Prithviraj Kothari said in a phone interview in Mumbai on Monday. Imports next month may also decline, he said.

Gold demand in India may fall between five per cent and 26 per cent in 2011 as consumers deem the metal too expensive, Morgan Stanley said last month. Bullion for immediate delivery advanced to a record on Monday, with futures in New York and India also reaching an all-time high.

“Demand should be a bit less compared with last month, because of high prices and the volatile market,” Kothari said. “Now slowly people are taking profit.”