India's gold imports may sharply decrease by 90% in March

On March 27th, a government official and two bank traders stated that India's gold imports in March will decrease by more than 90% compared to the previous month, to the lowest level since the pandemic, as record breaking gold prices have hit demand and led banks to reduce imports. The decrease in imports from India, the world's second largest consumer of gold, may limit the global rise in gold prices. Earlier this month, gold prices hit a record high. The decline in imports may also help India narrow its trade deficit and support the rupee. Two gold traders from two major gold import banks based in Mumbai stated that due to weak demand, they imported very little gold in March. "Even if the discount exceeds $35 per ounce, jewelers will not buy. There is no reason to import gold at record high prices and wait for demand," said one gold trader.