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Gold Import Zoomed to 131tons Ahead of Festival

Gold Import Zoomed to 131tons Ahead of Festival

Monday, October 06, 2014

 

The festival season in India has already kick-started with speck of positivism this year. Traders opted for further imports of gold on the enthusiasm of the festival buying. The September month figure for gold imports in India was shot up to 131 tons, a 110% increment from the August figure of 63 tons. 

 

Last year on September gold import saw a drastic reduction and came down to a mere 11tons due to the strict import restrictions. The Government of India had come out with the clear circular of 80:20 on August 14, 2013 that stated for every 100 tons import, one has to provide 20 tons for export purpose.

 

In the first eight months of 2014, India imported 418 tons of gold, which translates into average 50 tons a month. The sharp increase in import in September is indicating demand is coming back to market on account of marriage and festival and of course, comparably lower price of gold.    Gold has breached decisive support of $1200/oz in London. It appears now gold could easily come down to $1130/oz or lower level. Rupee has lost some ground against US dollar. That would remain deterrent to price fall of gold in local market. However, since gold is available at sub Rs.27,000/10gm and festival and marriage season is around, demand is expected to remain robust.

 

Bullion Bulletin: Bangalore