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Gold imports to India see a 27% spike in March quarter

The main reason behind the rise in net gold import was the steep decline in prices from record high in February

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Gold imports to India see a 27% spike in March quarter

The net import of gold by India rose by 27 per cent during the March quarter of calendar year 2019 on the back of fall in prices and high demand on account of wedding season. India's net gold import for the January-March period this year was 192.4 tonnes, as opposed to 151 tonnes in the corresponding period last calendar year.

The main reason behind the rise in net gold import was the steep decline in prices from record high in February, The Economic Times reported while quoting Harshal Barot, research consultant, Metals Focus, data provider to miner's lobby World Gold Council (WGC). The MCX generic contract hit a record high of Rs 35,052 per 10 gram on February 20 this year, before correcting to Rs 32,886 per 10 gram at March-end, the daily reported.

ALSO READ:Demand for gold sees a sharp rise in the first quarter of 2019

The correction in gold prices coupled with pick up in wedding season encouraged the jewellers to restock, leading to an increase in import of the precious metal, the report further said. Another noteworthy feature during the period under review was that import of gold dore bars which increased to 67.4 tonnes in March quarter of 2019 from 59.7 tonnes in the corresponding period last year, it added. Dore bars are an alloy of gold and silver usually prepared at the site of a mine.

Based on the fact that shares of organised players like Titan hit a record high of Rs 1,165 on April 25, 2019, the demand for gold continues to be robust, the daily said. The upcoming monsoon season will determine the demand trend for gold during the remaining year.

ALSO READ:Weddings, lower prices could lift Indian gold demand in June quarter: World Gold Council

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