Mumbai: Indian gold imports in August almost doubled from the previous year to the highest in five months of strong demand and because of the weaker prices encouraged jewelry to increase purchases for the celebration season, said a government source.
Highest imports by consumers of the second largest bar in the world can support the benchmarks of gold prices, which have corrected nearly 12% from the highest of $ 2,072 in August 2020.
The surge in imports can increase the Indian trade deficit and suppress rupees.
India imports 121 tons of gold in August, compared to 63 tons a year earlier, the source said on Monday with anonymous conditions because he was not authorized to speak with the media.
In terms of value, August imports jumped to $ 6.7 billion from $ 3.7 billion a year ago, he said.
Price correction in the first half of this month provides an ideal opportunity for jewelry who wants to build an inventory for the upcoming celebration season, said Mumbai dealer with a gold import bank.
Local gold futures fell to Rs 45,662 per 10 grams on August 10, the lowest in four months.
“Retail requests are good in August because the Coronavirus case falls and people stepped out to shop,” said Harshad Ajmera, wholesale gold in Kolkata.
The Indian authority has imposed local locking in the June quarter as a Covid-19 infection soared to a record high, but allowed the business to open gradually when the case fell.
Indian gold imports in the first eight months of 2021 tripled to 687 tons from the bottom base of 2020, when the Koronavirus outbreak forced authority to impose a national lock, said government officials.
The gold import of the country in September could rise above 80 tons from 12 tons a year earlier if the price remained stable in front of the festival, said the Bullion dealer based in Chennai.