Gold imports leap to highest since April as prices soften
MUMBAI: Gold imports in the country jumped to the highest in three months in July as economic activity picked up after a deadly coronavirus wave abated, and prices in the second-biggest consumer softened.
Inbound shipments surged 71% from a year earlier to 43.6 tonnes last month, according to a person familiar with the data, who asked not to be identified as the information isn’t public. That’s the biggest inflow since 70.3 tonnes in April. finance ministry spokesman Rajesh Malhotra didn’t immediately respond to calls.
States have slowly removed many restrictions on businesses and the movement of people as virus cases receded after peaking in May. The increased footfalls at stores and a nearly 5% fall in local prices this year has also revived sales.
Tata Group’s Titan Co. said Wednesday that its jewelry division was gaining new customers and demand strengthened steadily as states eased lockdowns and vaccination levels rose.
The country’s gold demand is expected to be stronger in the second half of 2021 compared with the prior six months due to softer prices and more occasions such as festivals and weddings, when jewelry is traditionally bought, P.R. Somasundaram, regional chief executive officer for India at the World Gold Council, said last week.
Earlier, it was reported that, at $16.3 billion, gold from Switzerland accounted for almost half of India’s imports of yellow metal in 2020-21. India’s overall imports of gold during the period stood at $34.6 billion markedly up from $28.2 billion imported the previous year despite the pandemic.
According to a report, among all of India’s top 10 import partners, imports from Switzerland increased by 7.8% to $18.2 billion, majorly led by gold. Switzerland replaced Saudi Arabia as India’s fourth-largest partner as the latter sank by one notch. India continues to be the world’s largest consumer of gold after China.