Import of gold into India during November 2019 was reported to be higher than the previous month as jewellers who were restocking after the festive sales also sought to take advantage of the slight dip in prices of the yellow metal.

While no official figures are available as yet, media reports quoting a variety of sources, estimate that the month-on-month growth was significantly high. A report from Reuters, quoting an unnamed official source, said the rise in import volumes as compared to October 2019 was over 75%, while other reports based on inputs from trade association officials asserted that the surge was temporary and imports would likely drop again in December. The reports also estimate that though the November imports were higher than the previous month, they were still well below the comparative figures for the same month a year earlier.

The rise is being attributed to restocking after the uptick in sales on account of festive buying during the Diwali season. The drop in prices from the record highs reached in the previous two months is said to have provided a further spur to the growth. In fact, market reports suggest that due to the sudden spike in demand, gold was actually trading at a premium for the first time in recent months.

Despite the temporary spurt during the month, official import figures indicate a slackening of demand from July onwards, post the 2.5% hike in import duty announced in this year’s Budget.

Overall, government statistics indicate that gold imports between April-October at US$ 17.63 billion are 9% below the comparable figure for the previous year. Imports have seen negative growth in July, August and September, though there was a slight increase in October on pre-festive purchases, a trend which continued in November on post-festival restocking.