 "India's gold imports fall 20% on surging inflation, says global council")
Gold imports to India, the world’s biggest consumer of bullion, fell for the first time in five quarters by a fifth to 200 tonnes in July-September as surging inflation adversely impacted disposable incomes, the World Gold Council (WGC) said in a statement.
“The third quarter of 2011 has seen some difficult times for gold not just in India but around the world,” Ajay Mitra, managing director with the WGC, India and the Middle East, was quoted as saying in the statement.
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India’s jewellery demand fell 26 percent to 125.3 tonnes during the quarter, while investment demand fell 18 percent to 78 tonnes.
Double-digit inflation coupled with depreciation of the Indian rupee exaggerated the fall in demand, Mitra said.
Gold prices gained 19 percent in the September quarter, and extended gains to hit a record of 29,212 rupees in November.
The WGC expects demand to pick up in the remainder of 2011 as the festival and wedding seasons may encourage a demand recovery.
In the first quarter of 2012, the successful monsoon season is expected to boost incomes in rural areas, which contributes to about 60 percent of the demand.
“We look forward to periods of increased price stability resulting in Indian consumers being able to build gold purchases in to their household budgets,” said Mitra.
Reuters