Gold imports up 372% in a month
Sat May 04 2024
Even with prices at record highs, Gujarat saw a surge in gold imports in April. According to data from the Ahmedabad Air Cargo Complex, gold imports in April 2024 stood at 3.5 metric tonne (MT). This was a 372% increase from 0.74 MT in March. The price of gold was Rs 73,500 per 10g in the Ahmedabad market on Friday, not far off the peak of Rs 76,500 that was reached in April.
Haresh Acharya, director of India Bullion and Jewellers’ Association (IBJA), said, “Gold prices were on an upward trajectory in April and touched record highs in the international and domestic markets. As tensions grew between Iran and Israel, investors anticipated a sharp increase and many procured gold in small amounts. This primarily led to the increase in imports.”
“Moreover, some gold was brought in for vaulting at the IIBX as well,” said another source privy to the development. Sources say gold prices may continue to hold around the Rs 72,000 level, as central banks continue to procure it as a hedge against inflation. Central banks bought 16 MT of gold in March, the World Gold Council said based on data from the IMF and other public sources.
Against April 2023, gold imports fell by 21%. The high prices dampened traditional jewellery demand, smothering the gems and jewellery sector. The spike in prices led several investors to book their profits.
Jewellers have pinned their hopes on the upcoming muhurat of Akshaya Tritiya on May 10.
Source: https://timesofindia.indiatimes.com/