Commerzbank: India's June Gold Imports Down From Year Ago
India’s gold demand has been soft compared to the same period of 2017, Commerzbank reports. Analysts cite preliminary data showing that India, the world’s second-largest gold consumer after China, imported 54 tonnes of the precious metal in June, roughly a quarter lower than the same month a year ago. Data from India’s Ministry of Finance show that gold imports slumped by 40% to 343 tonnes in the first half of the year. “That said, last year’s level was unusually high,” Commerzbank says. “One factor contributing to the sharp fall was the depreciation of the Indian rupee, which has made gold much more expensive in local currency. Nonetheless, the gold price in Indian rupees decreased recently despite the weak currency.” Normally gold demand in India is weaker between June and August since farmers – who account for much of India’s gold demand – are busy planting. “Since Chinese traders are also buying only small amounts of gold at present, the gold price is finding no support from this side, either,” Commerzbank adds.