New Delhi: In March this year, gold imports gained 471%. It stood at around 160 tonnes.
Gold Price Continually Decreased
There are two specific reasons for increasing imports. One, in February, the government cut the gold import duty to 10.75%, from 12.5% previously. Apart from this, the price of gold steadily decreased. In August last year, the price reached Rs 56,200 per 10 grams. This is the highest price ever. Whereas in March 2021, gold had touched a one-year low of Rs 43,320. Explain that India is the second largest gold buyer in the world.
Rupee may weaken due to increase in imports
India’s trade deficit may increase with the increase in gold imports and the value of the rupee is likely to decrease against the dollar. According to sources, a record 321 tonnes were imported in the March quarter, compared to 124 tonnes in the same period last year. If we talk in terms of value, then the import in March increased to 61.53 thousand crore rupees, which was slightly more than 9 thousand crore rupees a year ago.
Gold was sold at a premium
Traders associated with the jewelery business said that gold sold at a premium for the whole month due to rising demand. During this period a premium of up to $ 6 was charged on one ounce. However, in view of the increasing outbreak of Corona, there may be a decrease in its demand. Because Corona cases are increasing rapidly in the country. In such a situation, the government may impose new restrictions.
Corona rising continuously, the gold price may decrease further
On Thursday, the corona report of 81,398 people came positive, 50,384 patients were cured and 468 people died. This figure is the highest since October 1 of last year. Then there were 81,785 cases.
