India’s Gold Imports Set To Surpass 250T in Q4 2018

SEATTLE (Scrap Monster): India’s gold import volumes are likely to surge higher significantly during the last quarter of the current year. The sharp correction in equity markets and plunging domestic currency will raise the safe-haven status of gold. The increased demand will in turn lend support to global prices that have been hovering around $1,200 per Oz since late August 2018.

According to Bachhraj Bamalwa, former Chairman of the All India Gems and Jewellery Trade Federation (GJF), the country’s gold imports are likely to surge higher by 9% over the previous year to total around 250 tonnes. The traditional wedding and festival season demand coupled with elevated investment demand will lead to higher gold imports during the quarter, Bamalwa noted. The bleeding stock markets have prompted investors to think about diversification of asset portfolio, he added.

The recent announcement by the government that it does not consider any hike in gold import tax has come as a relief to jewelers across the country. Any hike in gold import duty would have hit demand during the last quarter of the year.

Meantime, fresh buying by local jewelers coupled with positive global market sentiments lifted domestic gold prices in India. The prices touched Rs 32,030 per 10 grams at the bullion market Wednesday. The prices rebounded in the international market too. The higher gold prices are likely to dent demand for gold in the country, said industry participants.