Imports Rise 9.6% To 286 Tonne.

Gold imports by India, the world’s largest bullion consumer, gained 9.6% in the first quarter as demand for jewellery advanced to the strongest in 10 quarters, the World Gold Council said on Thursday.

Imports increased to 286 tonne in the three months to March 31, the London-based producer funded group said in a report, citing provisional data, from 261 tonne a year earlier. Demand for gold jewelry climbed 12 % to 206.2 tonne, the highest since the third quarter of 2008, it said.

Global gold demand rose 11% in the January-March period as China, the second-largest consumer, helped boost investment and jewelry usage, the council said. Bullion touched a record on May 2, extending a rally into an 11th year.

Prospects for second-quarter jewelry demand are “promising” in India, driven by weddings and a festival, the council said. “Strong demand in India during the recent Akshaya Tritiya festival and the beginning of the wedding season, alongside extensive purchasing on dips in the gold price, underlines the strength of the Indian market,” the council said.

UBS AG’s gold sales to India are more than 10% higher this year as demand grows outside the traditional wedding and festival periods, the bank said on May 11.

Gold demand in India may increase to more than 1,200 tonne by 2020 as economic growth boosts incomes and household savings, the World Gold Council said on March 31.

Source : financialexpress.com