India Gold Imports Fall 50% on Eurozone Crisis
Source: Commodity Online (6/22/10)
"India imported ~17 tons of gold in May—half that imported in April."
As per the latest report available with the Bombay Bullion Association (BBA), India imported about 17 tons of gold during the month of May 2010, which is half of what was imported during April 2010. In April, imports stood at 34.2 tons.
The prices had touched a high of Rs.18629 per 10 grams in May, meanwhile in the international market prices went up to $1248.55 per ounce (an ounce = 28.35 gms).
Experts in the bullion market believe gold prices reeled down sharply due to depreciation of Rupee against the USD and the prevailing Eurozone crisis. Indian currency, Rupee, fell from Rs.44 to Rs.47.5 a dollar during May.
Meanwhile, the World Gold Council (WGC) maintained that India retained its position as world's largest gold consumer in the first quarter owing to a 49% recovery in demand, which was fuelled by peak wedding and festival season. For the full year period, gold imports stood at 739 tons during the period April 2009–March 2010.
"During, April, the imports went up mainly due to stock buying for the marriage season in May. However, the buying declined in May as the prices surged," Suresh Hundia, President, Bombay Bullion Association was quoted as saying.
The slowdown in imports for May will bear implications on the future imports as there will be a slowdown in physical demand for a sustained period.
Gold Futures for August contract on Indian Comex opened at Rs.18560 per 10 grams, and hit the peak of Rs.18645 and lows of Rs.18541 per 10 grams on the Multi Commodity Exchange (MCX).