By
Reuters
Published
Nov 26, 2009
Reading time
2 minutes
Download
Download the article
Print
Text size

India November gold imports half of 2008 level

By
Reuters
Published
Nov 26, 2009

MUMBAI, Nov 26 (Reuters) - India's gold imports so far in November are 15-18 tonnes, around half of the 34 tonnes in November 2008 as record prices hurt demand in the world's biggest market for the metal, the head of a leading trade body said. On Thursday 26 November, gold futures on the Multi Commodity Exchange of India Ltd (MCX) MAUc1 were at 17,815 rupees ($383) per 10 grams, up 38 percent from a year ago, and in global markets gold XAU= hit a record high of $1,194.90 an ounce.



"Imports are very low. Scrap sales have increased in the last few days because of high prices," Suresh Hundia, president of the Bombay Bullion Association, said on Thursday 26 November.

For the first 10 months of 2009, imports are 156.9 tonnes, down 59 percent from 383 tonnes in the same period in 2008, BBA data showed.

Record prices have encouraged people to sell gold holdings, including small pieces, which have improved supplies in the market and lowered the need for imports.

Dealers said there was some demand from people who thought prices would keep rising or who expected the central bank to buy more gold.

In early November, the IMF said it had sold 200 tonnes of gold to the Reserve Bank of India.

"Demand is good and can be attributed to panic buying," said a dealer in a private bank in Mumbai.

Bangalore trader D.P. Naresh said the record high prices had drawn people's attention to the commodity's investment value.

"People are buying not (just) in fear but also as they want to be in an asset class which will outperform other asset classes," Naresh said.

"Also it is (seen as) the safest investment," he added. ($1=46.5 rupees) (Reporting by Ruchira Singh; Editing by John Mair)

© Thomson Reuters 2024 All rights reserved.