December Gold Imports Hit the Lowest Level for the Month in Two Decades

SEATTLE (Scrap Monster): India gold imports in December 2022 hit the lowest level for the month it two decades. The imports of the yellow metal dipped sharply by 79% from the corresponding month a year before, said government sources. The demand for gold was badly impacted by rising prices.

As per sources, the country imported nearly 20 tonnes of gold during the last month of the previous year. This is significantly lower when compared with the imports of 95 tonnes in December 2021. In value terms, the Dec ’22 gold imports plunged to $1.18 billion, compared with $4.73 billion a year before. The retail demand for gold diminished during the month, as domestic prices rallied in tandem with international prices, triggered by weakness in local currency.

The cumulative gold imports by the country during the whole year of 2022 totaled 706 tonnes, upon comparison with 1,068 tonnes imported a year before. The country spent $36.6 billion on the overseas purchases of gold in 2022, down from record spending of $55.8 billion in 2021.

The government decision to raise gold import duty in July 2022 has sent smuggling to new heights, which in turn has prompted less volume of imports through official route.