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Indian gold imports surge yet again
(Kitco News) - Gold imports to India in September soared 658% from last year's pandemic lower base as a correction in local prices to the lowest level in nearly six months prompted jewellers to step up purchases for the upcoming festive season, a government source said.
The nation imported 91 tonnes of gold in September, compared to 12 tonnes a year earlier, the source said on Monday on condition of anonymity as he is not authorized to speak to media.
Looking at the monetary value, September imports surged to $5.1 billion from $601 million a year ago, the source said. India's gold imports in the September quarter surged 170% from a year ago to 288 tonnes, the government official said.
A Reuters interview noted "Last month global prices were correcting, and the rupee was appreciating. The combination brought down local prices significantly and allowed jewelers to stock up," according to a Mumbai-based dealer with a gold importing bank.
Despite the good news surrounding the imports gold is trading 0.60% lower on Monday morning. The yellow metal is trading at around $1750/oz and this comes despite the U.S. dollar index dropping 0.13% on the session. Having said that, U.S. 10 year treasury yields have moved back up to 1.493% (1.91%). The yielding safe haven could be playing havoc on precious metals today.
