Weddings prop up gold imports for 2nd month
Gold imports by India climbed in February for a second straight month as retailers increased buying due to jewellery purchases for weddings in the world’s biggest consuming nation after China.
Overseas purchases advanced 5.5%to 70.7 tons last month from a year earlier, according to a person familiar with the data, who asked not to be named as the figures aren’t public.
Imports during the April-February period declined 6.4% to 720 tons, the person said. Finance ministry spokesman DS Malik was not immediately available for comment.
Buying and wearing of gold during weddings and festivals is seen as auspicious in the majority Hindu country.
Demand is set to recover this year as cash hand-outs and higher spending in an election year boost disposable incomes, according to the World Gold Council.
“Rural demand is on the rise thanks to higher crop support prices and more rural-friendly schemes by the government,” Gnanasekar Thiagarajan, director at Commtrendz Risk Management Services, said by phone from Coimbatore in southern India.
Benchmark gold futures in Mumbai have eased 6% in the last two weeks after rising to ₹34,031($486) per 10 grams on February 20.
That is the highest since September 2013 and just below a record of ₹35,074 touched the same year.