SMM10 March 12: according to the latest Indian government sources, India's gold imports fell 38% in September from a year earlier to 8.4 tons, rebounding in the first two months. Mainly because the price of gold fell from an all-time high in September, market buyers expect the price of gold to continue to fall and wait and see. On the other hand, the Indian epidemic continues to ferment, the Indian economy is still hard hit, and the recovery of precious metals consumption capacity is limited.
Gold imports in India
The data show that India's gold imports have fallen sharply so far this year, especially in April and May. Of this total, India imported only about 50 kilograms of gold in April, down from 110.18 tons in the same period last year, a decline of 99.5 per cent. India imported about 1.4 tons of gold in May, down from 133.6 tons in the same period last year and down 99% from the same period last year. India's gold imports fell sharply for the second month in a row. As a major consumer of gold, India's gold imports have fallen sharply so far this year mainly for the following reasons:
1. The supply of gold shrank. In order to prevent the epidemic situation, many mines around the world have reduced production and limited production, and gold mines are no exception. And under the global anti-epidemic blockade, the ban on international flights and the closure of jewelry stores in India have kept the supply of gold at a low level.
two。 The price of gold rose sharply and consumer demand for gold weakened. After a brief decline at the start of the year, precious metals have risen almost all the way this year and set a multi-year record. And India's gold price has risen sharply as a result of logistics disruptions, grounded and other conditions that have led to a severe setback in the gold supply chain.
3. India's policy restrictions, in particular, led to a sharp drop in gold consumption in April and May. The Indian government controls the current account deficit by restricting gold imports and converts some of the domestic savings used to buy gold into financial savings. The central bank said the gold sovereign bonds would be issued in six tranches by September through banks and designated post offices, but could only be purchased by Indian residents.
Starting in June, India ushered in the first phase of unsealing. Hotels, restaurants, shopping malls and places of worship can be reopened from June 8. Jewelry stores can also reopen to facilitate the recovery of gold sales. In addition, there will be important festivals such as Diwali and Dentra in India in the second half of the year, which is also the peak wedding season. It is a traditional custom to buy gold during the festival or give it away at weddings. India's demand for gold usually starts to pick up in the second half of the year.
Overall, although India is the world's second-largest gold consumer and gold consumption has fallen sharply, historical data show that gold prices will not change significantly as a result of flagging demand. India's gold imports have been shrinking since March, but strong investment demand for gold has offset the decline in demand for physical gold. The gold market fell first and then rose last week, back above $1920 an ounce. In the later stage, he mainly focused on the impact of the American election. Industry insiders believe that the market is increasingly expected to win the Democratic Party of the United States, which is a more positive situation for gold. Because the dollar will weaken further, it means that there is stronger support for the gold price, and some institutions even say that the gold price may return to the $2000 mark soon.
