Gold imports nearly double in August as prices dip ahead of festivals

India's gold imports in August nearly doubled from a year earlier to the highest in five months on strong demand and as weaker prices prompted jewellers to ramp up purchases for the festive season, a government source said.

Higher imports by the world's second-biggest bullion consumer could support benchmark gold prices , which have corrected nearly 12% from an all-time high of $2,072 in August 2020. The surge in imports could increase India's trade deficit and pressure the rupee .

India imported 121 tonnes of gold in August, compared to 63 tonnes a year earlier, the source said on Monday on condition