Gold imports fall to zero in March

Written by Agencies | New Delhi | Updated: Mar 31 2009, 20:46pm hrs
Gold imports fell to zero for the second month in a row in March, owing to absence of demand in the domestic market following high gold prices, which are still ruling over Rs 15,000 per 10 grams level.

"Gold import during March is zero due to lack of demand because of high prices. Unless the prices goes down, there will be hardly any imports," Bombay Bullion Association Director Suresh Hundia said.

Imports during March 2008 stood at 21 tonnes. The total imports during January-March 2009 were at 1.8 tonnes as compared to 61 tonnes a year ago.

When asked if festive occasions like 'Akshaya Tritiya' - a festival which is considered auspicious to buy gold will boost demand, Hundia said, it all depends on the prices. "To buy gold you need money and unless the prices are favourable there will be no demand," he pointed out.

According to analysts, gold is ready for correction and in April the prices might go down considerably boosting the demand.

There is a possibility of prices coming down due to lack of buying interest triggered by low confidence on the yellow metal at higher levels, Bonanza Commodity Brokers' Assistant Vice-President (Commodity Research) Tarun Satsangi said.