Imports of gold in August dropped to their lowest level in three years, according to a report by Reuters citing an unnamed government source.
Imports in August dropped 73 per cent to 30 tonnes from 111.47 tonnes in the same period in 2018. In value terms, imports were $1.37 billion in August, a 62 per cent drop from the previous year.
This, even as prices hit a six-year high on Wednesday, climbing Rs 122 to Rs 39,248 per 10 gram in the national capital on Wednesday, following overnight gains in the precious metal in global markets, according to HDFC Securities.
Gold continued its rally for the second consecutive day, climbing Rs 122 to Rs 39,248 per 10 gram (24-karat) in the national capital on Wednesday following overnight gains in the precious metal in global markets, according to HDFC Securities.
India is the world’s second-largest consumer of gold, importing 760.4 tonnes in 2018, down from a ten-year-average of 838 tonnes according to the World Gold Council. The WGC estimated India’s consumption in 2019 to be between 750-850 tonnes.
The slump in imports could help reduce India’s trade deficit and support the rupee, which recently dropped to a nine-month low against the dollar.
Silver prices also maintained the rising trend and zoomed Rs 2,070 to Rs 50,125 per kilogram.
Tracking firm trends in the domestic market, silver prices also jumped to Rs 50,125 per kg from the previous close of Rs 48,055 per kg on Tuesday.
"Spot gold prices in Delhi were quoting higher in morning by Rs 122 with overnight rally in global gold prices," Tapan Patel, Senior Analyst (Commodities), HDFC Securities said.
In the international market, gold prices were fell to USD 1,537 an ounce in New York while silver quoted marginally higher at USD 19.27 an ounce.
With inputs from PTI
