MUMBAI, 19 Jun (Commoditiescontrol): India witnessed a notable increase in gold imports during May, rising to 43-47 tonnes from 42.5 tonnes in April, despite record-high gold prices, according to media reports that quoted unidentified trade and industry sources. The uptick in imports is attributed to robust retail and festive demand. However, compared to May last year, when the country imported 63.3 tonnes, there has been a significant decrease.
The commerce ministry's recent trade data highlighted that the value of gold imports in May dropped by 9.8% year-on-year, totaling $3.33 billion, down from $3.69 billion in the same month the previous year. While the monthly provisional data from the ministry only provides the value of imports, it reveals an overall downward trend in the monetary value of gold imports.
From January to May, India's gold imports surged by nearly 28.9% year-on-year, reaching approximately 259 tonnes, a substantial increase from the 201.4 tonnes imported during the same period in 2023.
Surendra Mehta, national secretary at India Bullion and Jewellers Association, noted that the strong import trends are expected to continue as Indian consumers adapt to the price increase, recognizing 70,000 rupees as the new benchmark price.
Prithviraj Kothari, managing director of RiddiSiddhi Bullions, pointed out that the fear of missing out (FOMO) among retail consumers is driving demand, with expectations of higher gold prices by the end of the year due to geopolitical uncertainties and tight monetary policies globally.
The demand for gold coins and jewellery during Akshay Tritiya on May 10 exceeded expectations despite the record-high prices in the domestic market. This year, gold demand on Akshay Tritiya was around 15-16 tonnes, slightly lower than last year's 16-18 tonnes. Notably, on May 20, gold prices hit an all-time high of 74,442 rupees per 10 grams on the MCX and $2,464.50 an ounce on the COMEX.
Switzerland emerged as the largest bullion exporter to India in the first four months of 2024, followed by the United Arab Emirates, South Africa, Peru, and the Dominican Republic. From January to April, India imported 84.62 tonnes of gold from Switzerland, 30.4 tonnes from the UAE, 20.68 tonnes from South Africa, 16.39 tonnes from Peru, and 15.06 tonnes from the Dominican Republic, according to commerce ministry data.
The price of gold increased by 2.3% month-on-month on the Multi Commodity Exchange and by 1.9% on COMEX due to a weaker dollar. Gold delivered a 13.7% return in the first five months of 2024, second only to silver, which surged by 33.0% during the same period.
According to a report by Metals Focus, changing consumer preferences, driven by India's young demographic, are influencing the industry to offer more modern jewellery designs. The rising gold prices have led consumers to seek greater value, often preferring jewellery that can be worn frequently over heavier, more traditional pieces.
As the second-largest gold importer globally after China, India imported 734.3 tonnes of gold in 2023, marking a 3% year-on-year increase. Jewellers anticipate that gold demand will remain strong and could see a surge in retail buying if prices correct to 68,000 rupees per 10 grams in the physical market.
(By Commoditiescontrol Bureau; +91 98201 3018)
0 Comments 
Post Comment 
