Gold regains its shine as imports rise

Gold is regaining its shine as the demand has increased for yellow metal in recent months. Gold import has been dull for past several months due to the impact of note ban on the economy. However, imports have regained momentum in 2017.

The import of gold for January and February were around 50 tonnes and 80 tonnes, respectively, indicating rise in gold demand. The rise in international gold prices followed by demonetisation in November had adversely impacted the demand for gold.

Industry estimates show that the first quarter of 2017 will end up with gold imports of 200 tonnes as against 214 tonnes in December quarter. Analysts expect gold demand to rise due to wedding season and Akshay Tritiya festival in April. The appreciating rupee has kept domestic gold cheaper despite rise in international prices.

In the first week of February, gold had seen very good demand and the last week of the month reported good imports as well. Analysts also expect bullish trend in gold prices from hereon, despite host of global concerns.