India’s October gold imports surged 60% from a yr earlier to a 31-month high as a drop in costs forward of Deepavali, prompted jewellers to ramp up purchases, a authorities supply mentioned on Monday.
Higher imports by the world’s second-biggest bullion client might assist benchmark gold costs, however may widen India’s commerce deficit and put strain on the ailing rupee.
India imported 123 metric tons of gold in October, in contrast with 77 tons a yr earlier, the supply mentioned, declining to be named.
The common month-to-month imports in October previously decade have been round 66 tons. In worth phrases, October imports practically doubled to $7.23 billion from $3.7 billion a yr earlier, he mentioned.
At the beginning of October, native costs fell to their lowest stage in 7 months, offering a possibility for jewellers to replenish for festivals, mentioned a Mumbai-based bullion vendor with a personal financial institution.
Local gold futures jumped to a report high of ₹61,914 per 10 grams in November, however demand remained strong throughout Deepavali, mentioned Amit Modak, CEO at jeweller PN Gadgil and Sons in Pune.
There was sturdy demand for cash and bars as folks seen gold as a long-term funding product, main to elevated purchases, he mentioned.
