The latest gold trade suggests that the country may witness record imports of gold during the month of March this year. As per preliminary data, the imports during the month have already crossed 130 tonnes during the initial three weeks of March this year. Estimates suggest that monthly gold imports may well exceed 150 tonnes during the month.
The projected imports during March this year are alarmingly high when compared with the recent past. The country’s gold imports were limited to nearly 39 tonnes in January this year. The imports jumped higher to almost 50 tonnes in February. However, March ’15 preliminary import data suggests three-fold jump in gold imports during the third month of the year. The daily trade data for the month of March also indicates that gold shipments to India from Ghana have gained significant momentum during the month.
The sudden surge in gold imports is mainly attributed to the increased procurement of the metal ahead of the upcoming festive season demand. Moreover, the government had recently relaxed certain norms on gold imports, thus making it easier for importers to secure gold. The fall in gold prices too spawned new life to gold shipments into the country.
Industry sources indicate that the rising gold demand in India may continue to lend support to gold in shorter term. In the run-up to the budget, gold imports had remained muted. The purchases by local traders which were deferred in anticipation of favorable duty cut announcement in the budget have also started to pick up.
Meantime, new gold schemes such as gold deposits and gold sovereign bonds are less likely to affect the country’s gold imports immediately, as it may take more time for the government to formulate final structure of these plans.
Source:metal.com
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