Gold imports fell by 50 per cent in June compared to the same period last year due to slowing demand amids a rise in prices.
"Gold imports stand at 12 tonnes in June 2009 compared to 24 tonnes in the same month last year," according to the data provided by the Bombay Bullion Association.
The demand for the precious metal declined as the prices ruled high hovering between Rs 14,500 and Rs 15,000 per 10 grams level in the domestic markets, Bombay Bullion Association President Suresh Hundia said from Mumbai.
Gold imports in June were less by about 6 tonnes from May's imports of 17.8 tonnes.
Gold prices today ruled over Rs 15,000 per 10 grams in the spot markets across the country. The MCX August gold today was trading at Rs 14,866 per 10 grams while in global markets it was at $951 an ounce (28.34 grams).
Gold imports have been sluggish so far this year and was at 51.6 tonnes during January-June 2009, compared to 139 tonnes in the same period last year, the data revealed.
In January, only 1.8 tonnes of gold was imported followed by no imports during February and March due to lack of demand following high gold prices, which were ruling over Rs 15,000 per 10 grams level then.
However, in April India imported 20 tonnes of gold due to rise in demand for 'Akshaya Tritiya' — a festival considered auspicious to buy the precious metal.
According to brokerage firm SMC Global's Rajesh Jain, gold prices are likely to remain bullish for the coming 10 days due to weakness in US dollar.
On the higher side the prices will be around Rs 15,400 per 10 grams and will not go below Rs 14,750 per 10 grams, he said. He said the weakness in dollar is likely to boost prices of almost all metal commodities.
Source : Business Standard