Gold imports seen picking up in India
Business Recoder, by M.A. Zuberi
BOMBAY (August 20 2002) : Bullion traders in India, the world's largest consumer, are holding back on imports spooked by volatile global prices but they may have to shed their lethargy very soon as demand picks up.
"I think traders can defer purchases for about two weeks (as they exhaust their stocks)," said a Bombay-based bullion dealer. Demand is expected to pick up in September as the festival season kicks into top gear, putting pressure on supplies, he said.
India imports 15,000 to 17,000 bars (of 116.64 grams each) on average every day, rising to about 20,000 bars during the peak festival season. But imports have now dwindled to 5,000 bars a day, down from about 7,000 bars at the start of August, due to fluctuating world prices this month.
Spot gold was quoted at $313.0/313.5 an ounce at 0735 GMT, marginally lower than the Hong Kong open at $313.50/314.00. It was traded at $304-$306 per ounce in early August. Local prices are derived from global quotes as India imports nearly 70 percent of its annual demand of 850 tonnes.
Gold purchases in India generally rise in the festive season, which starts in mid-August and peaks in early November with Diwali, the Hindu festival of light. "From September onwards, we will witness festival buying as well as pre-marriage purchases," said Satish Bansal of M D Overseas Ltd, a Delhi-based jeweller.
The marriage season normally runs from December to May, but many weddings take place in October and November in north India, traders said.
"Importers would like to stock gold to meet the fresh demand, but they are currently looking at a target price range of $305-$310 an ounce," said Nayan Pansare, a senior official of Bombay-based gold trading firm Inter Gold Ltd.-Reuters |
