India’s gold imports could climb to around 100 tonnes for a third straight month in November as dealers buy heavily for fear of curbs on overseas purchases, especially as the wedding season picks up, traders said.
Local premiums have fallen to about $10 an ounce from $18 last week due to the speculation over curbs, they said.
Curbs on gold imports figured in a meeting of central bank and finance ministry officials this month as a way to rein in India’s trade deficit, swelled by a jump in imports in September and October, to about 100 tonnes each month.
But officials wary of overreacting have not yet made a decision.
‘The speculation around rules triggered panic buying and imports are going to be over 100 tonnes again this month,’ said a trader in Mumbai, adding that shipments could outstrip those in October.
October shipments to India, the world’s No.2 gold consumer after China, jumped to about 150 tonnes, from less than 25 tonnes a year earlier and 143 tonnes in September.
This post was published at TruthinGold on November 28, 2014.
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