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India's gold imports seen rising to replenish stocks
May 05, 2003 17:13 IST
Indian gold imports, which fell last week as world prices rose, are likely to pick up as jewellers replenish stocks to meet local demand during the marriage season, traders said on Monday.
But imports by the world's largest gold consuming nation may start fizzling out from mid-May as the Hindu wedding season that fuels jewellery demand draws to a close.
"Jewellers' inventories have fallen as they had avoided big purchases in the past week," said Girish Choksi, a bullion trader based in the western city of Ahmedabad. "But it's difficult to further postpone purchases as retail demand is quite good."
Small investors had also postponed purchases, he said.
In the past week, average daily gold imports into Ahmedabad fell about 20 per cent from the previous week to 300 kg, while imports into Madras halved to 175 kg, traders said.
World gold prices have risen to $342 an ounce from $334 over the past week. Domestic prices follow global trends as India imports 70 per cent of the roughly 800 tonnes of gold it needs each year. It imports an average of 1.6 tonnes of gold a day.
The remaining 30 per cent is met by recycled gold and local output.
"We hope to see good jewellery demand until May 15 as there are many auspicious days for marriages till then," said Ranjit Rathod, a Madras-based gold importer.
Demand for gold jewellery, which forms nearly 85 percent of domestic sales, rises during the wedding season, which begins in January and runs through May. Parents and relatives customarily give gold to brides as financial security.
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