Make Kitco Your Homepage

Indian gold imports surge yet again

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(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. 


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.