India's gold imports rocket higher
(Kitco News) - India's gold imports have jumped compared to the previous year and they are at the highest rate in 5 months. This is due to a buying season and the nation emerging from the COVID-19 pandemic according to a Reuters report.
India imported 121 tonnes of gold in August, compared to 63 tonnes a year earlier, (anonymous government source). This translates to August imports of $6.7 billion from $3.7 billion a year ago This could be to fill inventories ahead of the festive season. There has also been a discount for the physical buyers as local gold futures fell to 45,662 rupees per 10 grams on 10th August, the lowest in four months.
India's gold imports in September could rise above 80 tonnes from 12 tonnes a year earlier if prices remain stable ahead of festivals, said a Chennai-based bullion dealer. Harshad Ajmera, a gold wholesaler in Kolkata also noted "Retail demand was good in August as coronavirus cases fell and people stepped out to shop,"
The world's largest consumers gold imports in the first eight months of 2021 tripled to 687 tonnes from the lower base of 2020 when the coronavirus outbreak forced authorities to impose a nationwide lockdown, the government official said.
The recent retracement and push higher seems to be having a massive effect on the physical market. The price has found support at the consolidation low on the daily and weekly charts near $1682.19/oz and it seems whenever the price gets close to $1700/oz a new wave of buying kicks in. Many have said physical purchases are propping up the market and if this story is anything to go by they could be right.