Gold import gains momentum

Gold imports have picked up pace in 2017, after several dull months. After 50 tonnes in January, February saw 80 tonnes of import; demand has continued in March, keeping jewellers busy. The industry estimate is 200 tonnes in the year’s first quarter. The December quarter saw import of 214 tonnes, mostly because of high demand during Diwali and the post-demonetisation period. Shekhar Bhandari, senior executive vice-president at Kotak Mahindra Bank, said: “Demand for gold has picked up. With a falling dollar index and a rising US gold price, the price in India has become attractive with an appreciating rupee. With the Akshay Tritiya festival in the fourth week of April, one should see continued demand over the next five to six weeks.” Marriage-related buying is also back with cash availability having improved for small consumers. Banking channels and cards are being widely used. Nigam Arora, a noted investor, says: “Gold these days is more influenced by India and China. This demand shows recovery.” Commodity Trading Tips