Import of gold up in July
Posted on: 14/Aug/2018 2:18:45 PM
The import of gold has increased to 75 tons during the month of July. There was a trend of declining import of gold for the earlier 7 months. In this situation, as compared to the previous year’s import of gold in July 2017, the import of gold this year (2018) has gone up by 44.2%.
The analyst, Cameron Alexander, from GFMS, explained regarding this that there was a reduction in import of gold by the jewellers during the month of June as there were strong expectations that the price of gold will come down.
In this situation, as an international exposition fair on jewellery was conducted during the 1st week of August in Mumbai, the demand for gold went up. As expected the price of gold was down in the month of July. Availing this ‘golden’ opportunity, the gold jewellery traders bought gold in larger quantities to keep in stock.
As the gold import increased, the deficit in the country’s budget has gone up. It has also affected the value of Indian Rupee in the exchange market. There was a new low to the level of Rs. 69.89 per US $ on Monday (13th August).
At the same time, the price of gold decreased to an unprecedented level as compared to the last 17 months. Due to this factor and also the expectation that the Rupee value will touch the level of Rs. 71 per US $, the gold jewellery traders were expected to buy larger quantities of gold.
