Gold imports may dip 30% this month

Kolkata: Gold imports may fall about 30 per cent in December from the previous month, following a drop in demand due to higher prices. In October, about 40 tonnes of gold was imported. Imports rose to 71 tonnes in November as domestic prices fell to ₹37,900/10 gm from ₹38,900. This followed indications that the US and China were closer to an interim trade deal after months of dispute.

Prices, however, rose earlier this month despite concerns ebbing over a prolonged US-China trade war, even as global investors await further clarity from “phase one” of the trade deal. Gold imports are expected to touch 50 tonnes in December, said Anantha Padmanabhan, chairman, All India Gem and Jewellery Domestic Council. “If the price is stable, in the range of ₹38,000 to ₹39,000/10 gm, we expect 40-50 tonnes of demand for gold monthly in Dec-February,” said Prithviraj Kothari, president, India Bullion and Jewellers’ Association & MD of RiddiSiddhi Bullions.

Bullion dealers are offering a discount of $3 per ounce to persuade jewellers to offload year-end stock. Analysts said demand for gold has been high on global economic growth concerns and an accommodative stance by central banks.