India Gold Imports Hit Lowest Level in Seven Years

SEATTLE (Scrap Monster): India’s gold imports recorded massive decline during the month of March this year.

According to government sources, the monthly gold imports by the country totalled nearly 25 tonnes in March 2020. This is down significantly by over 73% when compared with the same month a year before. The country’s gold imports had totalled 93.24 tonnes in March 2019. This is the lowest import levels recorded in the past 6.5 years. In value terms, the gold imports recorded 63% year-on-year decline to $1.22 billion.

The low import level was mainly due to record domestic gold prices and near-zero demand on account of shutdown of retail outlets following the three-week lockdown period announced by the Indian government. The country had reported modest gold demand until second week of March. However, gold purchases came to a standstill by the third week, when the lockdown period started.

ALSO READ: India's FY20 Gold Imports Hit a Decade Low

The dealers are of the view that demand is unlikely to see notable uptick, even after withdrawal of restrictions, as people would be more focused on purchasing essentials. The monthly gold imports are expected to fall below 5 tonnes in April this year. It must be noted that the country had imported nearly 110 tonnes of gold in April last year.