India Gold Imports Plunged in May This Year

SEATTLE (Scrap Monster): According to unofficial data, the gold imports by India plummeted during the month of May this year. The drastic fall in demand was mainly attributed to the travel restrictions and shop lockdowns, on account of new wave of the coronavirus pandemic. This completely wiped out the gold demand during Akshaya Tritiya as well as wedding season gold demand.

As per sources, the gold imports by the country totalled around 11.3 tonnes in May this year, significantly down compared with 70.3 tons in the month prior to that. However, the monthly imports stood higher than 1.3 tons imported during May last year, when the country was completely under the grip of nationwide lockdown to curb the spread of the first wave of the virus.

RELATED NEWS:

Banks Halt Gold Imports As Demand Dries

India Gold Premiums Dipped as Soaring Prices Dent Demand

Commenting on the import data, Harish Galipelli, director and head of strategy at Hyderabad-based Ila Commodities India Pvt said that the dip was mainly due to lockdown restrictions imposed by several states in the country, which kept shops closed. The imports in June are expected to improve. However, the rising momentum in gold prices could hamper gold purchases, he warned. It must be noted that gold prices recorded 6% surge in the month of May 2021 alone.