Imports Jump Ahead Of Festive Season, Will Gold Test Last Year’s 50K Levels?

Gold imports have surged in August ahead of the festive season. According to reports a day ahead of the official release of trade data, imports of the precious yellow metal have surged in August to 4.9 billion dollars. This is a massive 40% increase over last year’s 3.5 billion dollars. This is also in part due to a rise of 12% in overseas spot prices in the past year. Overall, demand in India is forecast to drop this year to anywhere between 650 and 750 tons, the lowest since 2020. The surge in gold imports has raised concerns over India’s trade deficit, which is already feeling the heat due to rising oil prices. Catch Sakshi Batra in an exclusive conversation with Navneet Damani, Head of Commodities Research at Motilal Oswal Financial Services discussing the prices of gold and its outlook in the festive season.