India’s Gold Imports Hit 5-Month Peak

SEATTLE (Scrap Monster): India’s gold imports surged higher significantly by 78% from the prior month to hit the highest levels in five months in November 2019. The country's gold imports had plunged by a third in October. The higher imports were triggered by fall in gold prices post-Diwali season.

As per government sources, the country imported 71 tonnes of gold valued at $2.94 billion in November this year. It must be noted that the imports had totalled only 40 tonnes in October 2019. Although the volume of gold imports stood lower when compared with November last year, the value of gold imports was marginally higher when compared with $2.76 billion in November 2018.

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Industry sources said that price stability in gold market coupled with anticipated demand pick-up in the fourth quarter led to higher imports in November. At the same time, the lower year-on-year gold import volume suggests that market sentiments are yet to bounce back completely.

Also, the pent up demand from jewellers led to increased gold dore imports by refiners in November this year. The share of dore in overall gold imports during the month was 33 tonnes, as compared with 8.5 tonnes a month before.

Going forward, industry participants expect gold imports to drop below 40 tonnes in December, substantially down when compared with the imports of 73 tonnes in December 2018.

The higher gold imports are feared to increase the country’s trade deficit and drag the rupee value.