Gold imports in Feb lowest since 2013

Gold imports in Feb lowest since 2013

 India’s overseas gold purchases are likely to hit a more than two-year low in February, as rising prices and hopes for a cut in import taxes keep buyers away, industry sources said.

While lower purchases by the world’s second-biggest consumer could dent the current rally in global bullion prices, it would mean relief for the government which has been struggling to curb gold imports that cost the country $36 billion in 2015. India’s imports of the metal are expected to drop to 25 tonnes in February, according to a median of estimates from five industry participants, including bank dealers and traders.

That would be about 67 per cent below month-ago levels and the lowest since September 2013, when arrivals were hit by a government mandate to export a fifth of all gold imports.
Global spot gold prices hit a one-year peak of $1,260.60 an ounce this month amid volatile financial markets, and are currently at $1,216. Prices have risen 15 per cent over two months, their biggest such rally since August 2011.

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