Gold imports drop by 48% in January

India’s gold imports dipped steeply by 48% YoY in January, their lowest in 4 months due to a rally in local prices that dampened buying sentiment. Given that India is the world’s second largest consumer of gold, this trend could impact gold prices that are trading at their highest level in nearly 7 years. On the other hand, they could also help New Delhi reduce the trade deficit and support the rupee. India imported 36.26 tonnes of gold in January, as compared to 69.51 tonnes a year earlier, according to a source. In value terms, the imports stood at US$ 1.58 billion compared to last year’s $2.31 billion. “Consumers are struggling to adjust with higher prices. They have risen too much, too fast,” said a bullion division head of a private bank, adding “Many potential customers are delaying purchases hoping prices will correct.” Gold futures in India hit a record high of Rs 41,293 per 10 grams in January.