Finally, import of gold into India, the world?s largest buyer, has re-started in full swing in April, after a gap of two months because of higher global prices and dull demand for gold jewellery in the country.
Traders expect gold import to reach about 40 tonne this month mainly to cash in on the gold rush for Akshaya Tritiya day which falls on April 27 along with current wedding season.
?I think banks and government agencies together may import nearly 40 tonne of gold this month,? Bhargav Vaidya, a leading gold expert told FE.
Bullion dealers have started importing in small quantities and expect a revival of demand for gold jewellery during wedding season. Apart from jewellery, gold coins of various denominations (10 gm, 8 gm, 5 gm, 2.5 gm and 1 gm) are in good demand this month, sources said.
Gold import parcels of about 25 tonne have been landed till date and may add another 10-15 tonne by month end, sources said.
The country has been importing less gold recently as prices remain volatile amid the global financial crisis.
On the other hand, overall exports of gems and jewellery sector witnessed a decline of 18.88% in second half of financial year 2008-09 owing to the slowdown in the USA.
?The stock markets across the globe remained in better form on expectations of an early rebound in economic slowdown. Gold prices have been following a common pattern throughout this bull ish market. It rises for a six-to-nine-month period and then consolidates for a year to 18 months, before its next rise. These movements are independent of the currency in which prices are measured,? a local bullion dealer said.
Spot gold in world market may trade in the range of $870-$900 a troy ounce and prices in local markets will continue hovering in the range of Rs 14,500 to 15,000 per 10 grams.
?Local prices will remain firm over the next few days as demand for gold coins and jewellery may continue for some time due to current wedding season and Akshaye Trithya,? a local dealer said.
?After making a double-bottom around $864 gold has turned upside and is currently forming a bullish price pattern called inverse head and shoulders pattern on the hourly chart. Currently, the price is flirting around the neckline of the pattern on MCX rests around Rs14, 500. Once gold breaches this neckline, it is likely to test Rs 14,800 to Rs 15,000 on upside,? said a technical analyst with Sharekhan.