NEW DELHI: INDIA’S gold imports in August fell to about 30 tonnes, down from 39.66 tonnes in July and 111.47 tonnes in August last year as high gold prices and higher customs duties took a bite out of the local gold market. The fall, when compared to August last year, was a massive 73 per cent.
Gold import figures have not been released officially, but commerce ministry officials said that the fall was a result of the government’s actions to curb imports.
Gold prices have been rising through August and crossed the psychological Rs 40,000 for 10 grams of 24-carat gold last Thursday and “this tempered retail or goldsmith community’s demand for it,” said Vikram Sahney, a commodities trader. Gold imports were also checked by higher customs duty imposed by the government, Sahney added. Duty on gold was increased to 12.5 per cent from an earlier 10 per cent in the budget presented in July this year.
Globally, gold prices have risen as investors scrambled to find safe havens to park their cash. Equity markets not only in India but worldwide went into a tailspin due to a mounting slowdown and tariff and currency war fears.
According to a forecast by BNP Paribas, gold will rise above $1,600 an ounce as the US Federal Reserve is likely to go in for another interest rate cut to combat the economic slowdown.
Spot gold traded at $1,540 an ounce on Wednesday in global markets. Gold prices hit $1,555.07 last Thursday, the highest level since 2013.