India Gold imports plummet in May on higher prices
Mumbai (Jun 9) India gold imports has plummeted during May this year as a 16% increase in domestic prices since the start of the year kept buyers away.
According to sources familiar with provisional Finance Ministry data, Indian gold imports have tumbled for fourth straight month in May this year. The gold imports by the country during the month are believed to have dropped sharply by 51% year-on-year to 31 metric tons in May.
However, when matched with the April ’16 imports of 22 tons, the monthly imports in May have climbed higher by over 40%. It must be noted that the official Ministry data is yet to be released.
Indian gold demand has remained muted over the past several months. The jewellers’ strike in protest against 1% excise tax on gold ornaments had affected sales during the entire month of March and part of April.
The closures had also boosted gold inventory levels, thus leading to lesser imports. The sales remained lackluster during May, on account of rise in domestic gold prices in line with global price gains. Incidentally, domestic gold prices have rallied almost 15% since the start of the year.