MUMBAI (Scrap Monster): As gold prices plunge after the recent easing of gold import restrictions by Reserve Bank of India, the investors are seen in brisk to sell off the yellow metal. In May 22, gold prices sharply declined to Rs 800, the biggest fall in this year.
According to Mr. R. Somasundaram, managing director of India World Gold Council said that the gold imports are likely to enlarge by 100-130 tonnes under official routes after the RBI's new measures and it will help amplify the accessibility of gold. The gold premiums also declined to $30-$40 an ounce over the global benchmark from $80-$90 in the previous month.
It is reported that India's current account deficit fell to $32.4 billion in FY14, from $88 billion in FY13 that strengthened ailing rupee. This may force the RBI to Bring down the value imported gold in rupee terms that would affect the gold prices.
As per the report, the gold demand has declined while there is no festival or the wedding season in the coming months and the buyers expect a further decline in gold prices to Rs. 25,000 per 10 gm level.