Gold imports in India 2019 reach the minimum in three years, as record prices reduce demand
MUMBAI: India gold imports In 2019, it fell 12% from a year ago to the lowest level in three years, as retail purchases faltered in the second half after local prices recovered to a record high, a government source said on Friday.
A smaller purchase by the world's second largest consumer of precious metals could affect world prices that rose 18% in 2019, but help the government reduce the trade deficit and support the rupee.
India meets almost all of its gold demand through imports, which amounted to 831 tons imported in 2019, compared to 944 tons last year, said the source, who is not authorized to speak with the media.
In terms of value, 2019 imports fell almost 2% to $ 31.22 billion, he added.
Las gold imports en diciembre cayeron un 18% respecto al año anterior a 60 toneladas, dijo la fuente, y agregó que en términos de valor, las importaciones de diciembre cayeron un 4,3% a $ 2,46 mil millones.
We expected 2019 demand and imports to exceed 2018. But as prices began to increase as of June, retail demand moderated, said a bullion division chief of a private bank.
Gold futures in India reached a record Rs 39,885 per 10 grams in September.
In the first half of 2019, India imported 564 tons of gold, while in the second half the imports were 267 tons, according to government data.
Imports generally increase during the second half due to the wedding season, as well as to festivals such as Diwali and Dussehra, when buying gold is considered auspicious.
Las gold imports en enero podrían caer por debajo de 40 toneladas si los precios de los lingotes se mantienen elevados, dijo un comerciante de Mumbai con un banco importador de lingotes.
Gold prices On Friday, it rose 1% to a maximum of four months as tensions erupted in the Middle East after a senior Iranian military official was killed in a US air strike, causing offers of safe haven.