India's Gold Imports Spiked 123% in April

SEATTLE (Scrap Monster): The gold imports by India recorded notable surge in the month of April this year. The surge was mainly driven by substantial rise in domestic demand, said data published by the Commerce Ministry.

According to Ministry data, gold imports skyrocketed to touch $6.3 billion in April 2021. This is significantly higher by nearly 123% when matched with the imports during the corresponding month a year before. The Indian gold imports had totalled only $2.83 million in April 2020. However, the silver imports during the month were down significantly by 88.53% to nearly $11.9 million.

The rise in gold imports pushed the current account deficit (CAD) to $15.1 billion in April 2021, compared to $6.76 billion in the same month a year before.

As per industry participants, the domestic demand for gold in the country has been on the rise during the past few months, thus resulting in higher gold imports into the country. However, the second wave of Covid-19 pandemic is likely to impact retail gold demand in the months to come. Several states are being forced to resort to strict lockdown measures to contain the spread of second wave. More states are likely to follow suit.

The shuttering of shops has impacted the gold market during Akshaya Tritiya. The auspicious day witnessed muted gold sales. The sales this year are feared to have not even reached 1 tonne, as compared with average normal sales of around 30 to 40 tonnes.

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