Gold imports drop 12% in 2019 as record high prices dent demand

India's gold imports in 2019 fell 12% from a year ago to the lowest level in three years as retail buying faltered in the second half after local prices rallied to a record high, a government source said on Friday.

Lower buying by the world's second biggest consumer of the precious metal could weigh on global prices that jumped 18% in 2019, but help New Delhi bring down the trade deficit and support the rupee.

India imported 831 tonnes of gold in 2019, down from 944 tonnes a year ago, the source said, who is not authorised to speak to the media. In value terms, 2019 imports fell nearly 2% to $31.22 billion, he added.

Also read: Gold imports drop 7% in April-November to $20.57 billion

Also read: Nov gold imports jump 78% to 5-month high as prices fall