Gold Imports by India Doubled in August

The cumulative imports during the initial eight months of the current year stood at 687 tonnes.

SEATTLE (Scrap Monster): The demand for gold in India almost doubled in the month of August this year, compared with the same month a year before. The gold demand surged to hit the highest level in five months. The rising demand situation coupled with boosted purchase by jewellers ahead of festive season led to increased demand. Incidentally, India is the second largest gold consumer in the world, next to China.

The country imported 121 tonnes of gold in August 2021. This compares to imports of 63 tonnes in the same month in 2020. The value of gold imports surged higher from $3.7 billion in August 2020 to $6.7 billion this August. The cumulative imports during the initial eight months of the current year stood at 687 tonnes.

The dealers expect gold imports to touch nearly 80 tonnes in the month of November this year, ahead of festivals, provided the prices continue to remain stable. This is significantly higher when matched with the imports of just 12 tonnes in November 2020.

Although the higher gold imports by the country are likely to widen the country’s trade deficit for the month and put more pressure on the domestic currency, it is likely to lend good support to benchmark gold prices, which have corrected by almost 12% from the historic highs recorded in August last year.

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