33% dip in India’s gold imports

Surging prices continued to weigh on consumer demand during the festival season, bringing down India’s gold imports in the month of October by 33%. Gold imports were down at 38 tonnes in October, according to reports. This is the fourth consecutive month that India’s gold imports were down with domestic gold prices hitting record-high levels this year.

Colin Hamilton, Managing Director of Commodities Research, BMO Capital Markets, opined, “High prices put off buyers of jewelry. With 71 auspicious days in the Hindu calendar across 2019 (vs. 31 in 2018), Indian demand was expected to be strong this year; however, so far the story this year has revolved around central bank buying from China and Russia”.  A new import tax of 12.5% and a sales tax of 3% are also responsible for this.