With interest in gold as a safe investment option continuing, demand for the yellow metal is likely to rise after the prices stabilise between Rs 14,500 and 15,000 per 10 gm, experts say.
“As the prices have stabilised, we can say that till July demand for gold will rise and the imports will also go up,” World Gold Council (WGC) Director Dharmesh Sodah said.
Interest in gold as a safe investment option giving better returns has not reduced in the domestic market, according to Sodah. Bullion traders in Delhi said that 2-3 months ago the business had come down but has now increased.
“Gold prices (have) stabilised and people have started returning to the markets,” Sodah said. This year from January to March gold imports have been very little; however, from April-June there has been an improvement in imports, he added.
“In February gold had ruled at a high of Rs 15,800 per 10 gm, which led to people offloading their old jewellery for better returns,” he said, adding that small demand had led to slowdown in imports.
Gold import in January stood at 1.8 tonnes. February and March saw no import. Import in the first three months of 2008 stood at 62 tonnes.
In April due to ‘Akshaya Tritiya’, a festival considered auspicious for gold buying, import increased to 20 tonnes, but declined to 18 tonnes in May.