NEW DELHI: The world's largest gold consumer, India, witnessed 41 per cent decline in imports of the precious metal as higher prices reduced its demand.
The import fell to 26 tonnes in October from 44 tonnes a year earlier, as domestic demand squeezed following the rise in prices.
During the month of October gold prices rose from Rs 15,870 per 10 grams to Rs 16,190, according to the data released by the Bombay Bullion Association.
Further, traders had already imported 37.5 tonnes of gold in September, mainly to meet the festive season demand in October, which led to lower procurement from abroad.
"The decline in October is mainly due to the record high prices that dampened consumer demand," Bombay Bullion Association Director Suresh Hundia said, adding volume of shipment also declined last month, as the festival demand was no longer there.
In the international markets, prices shot up from USD 1,050 an ounce on November 3 to a high USD 1,194 yesterday, driven by the struggling American currency and as also the Reserve Bank's purchase of a whopping 200 tonnes of the precious metal from the International Monetary Fund triggered apprehensions that more apex banks would soon follow suit.
However, the prices today declined by Rs 320 to Rs 17,850 per 10 gram on the Multi-Commodity Exchange.
Source : The Economic Times