According to people familiar with the matter, India’s gold imports in March reached 98.6 tons, an increase of about 6.5 times compared with 13 tons in the same period of last year, reaching a new high since May 2019. As the price of gold plummeted, India’s jewelry demand was stimulated by the upcoming wedding season.
Since the information has not yet been made public, the source asked for anonymity.
In the first three months of this year, India’s gold imports reached nearly 190 tons, more than doubling from the same period last year.
India’s benchmark gold futures have fallen about 17% from a record high in August, boosting demand ahead of the wedding season and next month’s akshaya tritiya. Buddha’s full moon festival is the second auspicious day to buy gold in the Indian calendar.
Nevertheless, the surge in new crown cases and restrictions on movement of people and business activities by some local governments are worrying jewellers, which may threaten the recovery of sales. In Maharashtra, India’s largest gold market, non essential businesses have been asked to remain closed for the rest of April due to a surge in infection.