Gold imports down 60.4% to $1.23 bn in April
The Dollar Business Bureau
India’s gold imports decreased for the third straight month in April 2016. The country has imported $1.24 billion worth gold, which is 60.47% down from $3.13 billion in the same month previous year as per the data released by Ministry of Commerce and Industry on Friday. Gems and jewellery exports increased 17.23% to $3.45 billion from $2.94 billion in the same month last year. Silver imports also have declined 31.39% to $218.98 million.
Due to a long strike by jewellers in India, the gold imports had declined over 80% to $972.96 million in March. Gold demand in India has come down 39% y-o-y to 116.5 tonnes during the last quarter of FY 2016 when compared to the demand of 191.7 tonnes during the same quarter previous fiscal year, as per the World Gold Council (WGC).
Alistair Hewitt, Head of Market Intelligence at WGC, said that the demand for jewellery has endured a difficult quarter due to 42-day strike by jewellers in India. Still WGC believes that Indian demand has been just postponed. Gold buying is likely to increase during the coming wedding season.
In the coming days, WGC anticipates that ongoing market uncertainty and unconventional monetary policies would continue to support both the investment and central bank demand for gold. Along with this, an expected recovery in India should increase the gold demand over the period in this year, he added.