Gold import's momentum has continued in April, with an estimated 75-odd tonnes, after 103.8 tonnes in March by jewellers and bullion traders, estimated GFMS Thomson Reuters.
In April 2016, the import was 53 tonnes, about 40 per cent less. The price of gold here is at a four-month low, at Rs 27,960 for 10g.
In recent months, says Sudheesh Nambiath, lead analyst for South Asia at GFMS, "Buying is related to stocking by retailers and consumer demand ahead of Akshaya Tritiya (April 28, when it is auspicious to buy gold). Implementation of the goods and services tax (GST) is also seen to be a key driver, in addition to the pent demand that followed re-monetisation."
This Akshaya Tritiya day, 35-40 tonne of gold and jewellery is estimated to have been sold. A major chunk of this demand came from South India.
Also in April, jewellery sale was good, "As those intending to buy for weddings in the second half of the year might have seen this day (Akshaya Tritiya) as auspicious to buy. Gold imports for the quarter ending June are expected to rise by more than 100 per cent as compared to the quarter in 2016 but imports could drop thereafter as GST gets rolled out," said Nambiath.
Gold prices have been low for some says as a rate increase in the US next month is seen as a certainty and US jobs data support this. Earlier geopolitical worries that were holding gold higher are also tapering. The international price is $1,221 an ounce. In Mumbai's Zaveri Bazar, standard gold closed on Thursday at Rs 27,980, the lowest after January 3 this year.
