Price fall lifts India gold imports

NEW DELHI – India may import 10 per cent more gold this year as a fall in world prices just ahead of the marriage and festival seasons has opened up a buying opportunity for its gold-crazy consumers, an industry official said.

Softer gold prices are also expected to boost the world appetite for Indian jewellery, exports of which could rise 15 per cent in 2006, said Bakul Mehta, chairman of the Gem and Jewellery Export Promotion Council. Demand for jewellery and other consumer goods is growing at a fast pace as disposable incomes rise in Asia’s fourth-largest economy, which has been expanding at an average rate of eight per cent in the past three years.On September 11, gold fell under US$600 an ounce for the first time in more than two months, owing to falling energy prices and a weak technical outlook.India, which consumed 720 tonnes of gold in 2005, including jewellery consumption of 587 tonnes, is the world’s largest consumer of the metal.With negligible domestic production, the jewellery trade is largely dependent on imported raw materials.Nampa-ReutersDemand for jewellery and other consumer goods is growing at a fast pace as disposable incomes rise in Asia’s fourth-largest economy, which has been expanding at an average rate of eight per cent in the past three years.On September 11, gold fell under US$600 an ounce for the first time in more than two months, owing to falling energy prices and a weak technical outlook.India, which consumed 720 tonnes of gold in 2005, including jewellery consumption of 587 tonnes, is the world’s largest consumer of the metal.With negligible domestic production, the jewellery trade is largely dependent on imported raw materials.Nampa-Reuters