Mumbai: India’s gold imports fell for a sixth straight month in July as sluggish demand and record high discounts prompted banks and refineries to reduce overseas purchases of bullion, provisional data from consultancy GFMS showed on Monday.
Lower demand from the world’s number two gold consumer could hurt global spot prices that are trading near a two-year high, but help the south Asian country to reduce trade deficit.
Gold is one of India’s biggest expenses on its import bill. India’s gold imports in July are estimated at 20 tonnes, GFMS data showed, the lowest since March and down 79.3 percent from a year ago in the same period.
“Demand for imported gold fell sharply as discounts (to the global spot benchmark) were in the range of $50 to $100 in cash market through the month,” said Sudheesh Nambiath, a senior analyst at GFMS, a division of Thomson Reuters.
Dealers have been offering record discounts to lure buyers, but demand remains bleak with customers more eager to sell old jewellery and bank profits at current high prices.
