HSBC: Indian Gold Appetite May Improve Ahead Of Diwali
New Delhi-India (Oct 16) Indian gold buying may pick up ahead of the Diwali festival Oct. 23, and data show that it did increase last month, says HSBC. “Diwali, also known as the festival of lights, is considered the most auspicious period for bullion buying in India,” the firm says. Meanwhile, the bank cites data from the All India Gems and Jewelry Trade Federation, estimating that the country imported 95 metric tons of gold in September compared with 15 to 20 for the same month last year.
According to India’s Ministry of Commerce and Industry, gold imports rose to $3.75 billion in September from $680 million for the same month last year. The ministry also reported that the country’s merchandise trade deficit widened to $14.2 billion in September from $10.8 billion in August. “The relative increase in gold imports is largely attributed to a lower base as the Reserve Bank of India enacted curbs to the bullion traded last year,” HSBC says.