India’s gold imports plunged 41 per cent in February from a year earlier as a rally in local prices to a record high squeezed retail demand, a government source said on March 3.

 
The world’s second-biggest consumer of gold imported 46 tonnes in February, compared with 77.64 tonnes a year earlier, the source said on condition of anonymity as he was not authorised to speak to media. 

In value terms, February imports totalled $2.36 billion, down from $2.58 billion a year earlier, he said. 

In the first half of February demand was modest but it faltered as prices started rallying from mid-February, said a Mumbai-based dealer with a bullion importing bank. 

Gold futures in India hit a record high of 43,788 rupees per 10 grams in February after rising nearly a quarter in 2019. 

The weak demand forced dealers to offer as much $14 an ounce discount over official domestic prices in February, the most since mid-October. The domestic price includes a 12.5 per cent import tax and 3 per cent sales tax. 

Source: Reuters