INSUBCONTINENT EXCLUSIVE:
In September, local gold futures hit an all-time high of Rs 39,885.Gold imports plunged 68 per centyear on year in September to their lowest
in more than three years as record domestic gold prices curbed retail buying, a government source said on Friday.Lower imports by the
world's second biggest consumer could cap gains in global prices that are trading near their highest level in over six years, but help New
Delhi in bringing down the trade deficit and supporting rupee.The south Asian country fulfils nearly all its gold demand through
imports.India imported 26 tonnes of gold in September, down from 81.71 tonnes a year ago, the source said, who is not authorised to speak to
In value terms, September imports fell 51 per cent to $1.28 billion, he added.In September, local gold futures hit an all-time high of Rs
39,885 ($562.10) per 10 grams, taking their gains to more than 26 per cent in 2019.Retail demand was weak in September because of higher
prices and the Shradh period, which is considered inauspicious for buying bullion, said a Mumbai-based dealer with a bullion importing
bank.In September, sluggish demand forced dealers to offer a discount of up to $51 an ounce from official domestic prices, the biggest since
The domestic price includes a 12.5 per cent import tax and 3 per cent sales tax.Gold imports are likely to increase in October as
jewellers make purchases for festivals, said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.Demand for gold
usually strengthens in the final quarter as India gears up for festivals such as Diwali and Dussehra.Gold imports in October could rise due
to festivals, but could still be less than 50 tonnes and down from last year's 57 tonnes, said a bullion dealer based in Delhi."Higher
prices may force consumers to cut down purchases
There is need of hefty price fall to boost demand," he said.Get Breaking news, live coverage, and Latest News from India and around the
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