Gold imports nearly double in August

Gold imports in August nearly doubled from a year earlier to the highest in five months on strong demand and as weaker prices prompted jewellers to ramp up purchases for the festive season, a government source said.

Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices, which have corrected nearly 12 per cent from an all-time high of $2,072 in August 2020. The surge in imports could increase India’s trade deficit and pressure the rupee.

The country imported 121 tonnes of gold in August, compared to 63 tonnes a year earlier, the source said on Monday on condition of anonymity as he is not authorised to speak to media. In value terms, August imports surged to $6.7 billion from $3.7 billion a year ago, he said.

A price correction in the first half of the month gave an ideal opportunity for jewellers who wanted to build inventories for the upcoming festive season, said a Mumbai-based dealer with a gold importing bank.