India’s gold imports surged to nearly two-year highs in March driven by the wedding season demand, Bloomberg reported.
- Overseas purchases of gold to India rose more than sevenfold to 98.6 tons in March from 13 tons a year earlier. This is the highest since May 2019.
- Imports for the first quarter more than doubled to almost 190 tons according to Bloomberg calculations.
- Demand for the wedding season was boosted by the slip in India’s benchmark gold futures which fell 17% from a record in August 2020.
- The import growth comes ahead of the Akshaya Tritiya in May, the second-most auspicious day to buy gold in the Hindu calendar.
- Jewelers are worried that a resurgence in COVID-19 cases and restrictions on movement could threaten the revival in sales.
- India’s biggest bullion market Maharashtra has asked non-essential businesses to close temporarily for the rest of April as infections rise.