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(Kitco News) - India's gold imports for the month of July more than doubled in comparison to the year-earlier to their highest level in three months. It has been noted that demand improved after states lifted lockdown restrictions, allowing retail consumers to make purchases for weddings, a government source said.
The Reuters report noted, higher imports by the world's second-biggest consumer could support benchmark gold prices , which have corrected nearly 13% from an all-time high of $2,072 in August 2020. It has been said the surge in imports could increase India's trade deficit and pressure the rupee.
In terms of numbers India imported 74 tonnes of gold in July, compared to 32 tonnes a year earlier, the government source said on Thursday, requesting to remain anonymous as he is not authorised to speak to the media. This equates to $4.2 billion from $1.78 billion a year ago.
A Mumbai-based dealer with a bullion importing bank."Imports were far lower than normal during May and June due to lockdown restrictions. They jumped in July as states started relaxing lockdown restrictions from June,".
In addition to this, "Many retail consumers wanted to make purchases for weddings. They resumed purchases as soon as jewellery stores lifted shutters," said Harshad Ajmera, the proprietor of JJ Gold House, a wholesaler in the city of Kolkata.