India’s gold imports rose to 658 per cent in September, with the revision in local prices hitting a six-month low.
The benchmark could support higher imports and gold prices for the world’s second-largest gold consumer, falling nearly 15 percent from a record high of $ 2072 in August 2020.
An increase in imports could widen India’s trade deficit and push the rupee.
India imported 91 tonnes of gold in September, compared to 12 tonnes a year ago.
In terms of value, September imports rose to $ 5.1 billion from $ 601 million a year earlier, he said.
India’s gold imports rose 170% to 288 tonnes in the September quarter, a government official said.
“Global prices were adjusted last month and the rupee was appreciating. The combination has significantly reduced local prices and allowed jewelers to stockpile,” a Mumbai-based trader told the Gold Import Bank.
The local gold futures traded at Rs. 45,479, the lowest in almost six months.
Retail demand is improving and jewelry stores are registering good space, the dealer said.
The country’s gold imports will rise to more than 45 tonnes in October, with the current price remaining stable at Rs 46,300, said a Kolkata-based gold trader.
“Retail consumers are now coming out of shopping. Fear of the corona virus is declining with declining corona virus cases,” the dealer said.
In the June quarter, Indian authorities imposed local locks because the Govt-19 infections were at an all-time high, but as cases dropped they allowed businesses to gradually reopen.
(Except for the title, this story was not edited by NDTV staff and published by Syndicate Feed.)