Gold imports may decline by 90% in March, demand reduced due to record high prices

The country's gold import will decline by more than 90 per cent in March compared to February 2024 and reach its lowest level since the Corona epidemic. A government official and two bank dealers said record high prices of the precious metal had hit demand. Due to this, banks have reduced the purchase of gold, which may lead to a big decline in imports. A government official said that India had imported 110 tonnes of gold in February. In March it may come down to 10-11 tonnes.

The second-largest consumer of gold, India, may limit its imports, which could restrain the rise in global prices of the precious metal, which reached a record high earlier this month. India's trade deficit will decrease as a result of the drop in imports. There may also be support for the rupee.

Even at discounts of over $35 per ounce, jewellers are not purchasing gold because there is no need to import at record-high prices and hold out for demand to increase. Due to the high cost of gold, consumers are replacing their outdated jewellery with new pieces, and as a result, jewellers are no longer purchasing gold from banks.

Due to the rise in the prices of precious metals in the global markets, gold became costlier by Rs 150 and closed at Rs 67,000 per 10 grams in the Delhi bullion market on Wednesday. Silver became cheaper by Rs 250 and closed at Rs 77,250 per kg. In the last trading session, gold had closed at Rs 66,850 per 10 grams. In the international market, gold closed strongly at $ 2,180 an ounce.