No gold imports by India for second month -trade

MUMBAI, March 31 Tue Mar 31, 2009 3:31pm IST

MUMBAI, March 31 (Reuters) - India imported no gold for the second month in a row in March as high prices dented consumer demand in the world's biggest market for the metal, the head of a trade body said on Tuesday. "Our records are showing zero so far," Suresh Hundia, president of the Bombay Bullion Association (BBA) told Reuters. "Scrap sales have reduced, but demand is not there either."

Imports in February and March last year were 23 tonnes and 21 tonnes respectively.

As local prices of gold climbed to a record high of 16,040 rupees ($315) per 10 grams MAUc1 on Feb. 20, people sold old ornaments raising supply of scrap and keeping imports at bay.

Prices have since eased, but at 15,138 rupees on Tuesday is still seen as too expensive with an economic slowdown further dampening sentiment, Hundia said.

Exports of gold coins slowed down in March as the gap between foreign and local prices narrowed from February, he said.

India has been the world's biggest buyer of gold for years, but imports slumped 48 percent in 2008 to 396 tonnes.

The falling trend has continued this year with imports in January plunging 89 percent from the same month last year to 1.9 tonnes.

For a graphic showing India's monthly gold imports, double click on: here ($1=50.9 rupees) (Reporting by Ruchira Singh; Editing by Ranjit Gangadharan)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 

Mircosoft Results

Microsoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 

Photo

Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage