India's gold imports slip as price nears US$1,000

Production and Markets

Publishing Date: 01 Jun 2009 9:43am GMT
Author: Mining Journal

India's gold imports so far in May have been in the range of 10-15t, lower than 29t imported in all of May of 2008 as high prices have subdued buyers' appetites, a trade body head said.

"Prices went up this month, so imports have fallen," said Suresh Hundia, president of the Bombay Bullion Association.

"If prices go any higher, imports will stop and scrap selling will start."

However, gold rallied 2% to a high of $978.30/oz, its strongest level since February 24, as the dollar tumbled to a fresh five-month low against a basket of currencies and oil rose above US$66 a barrel.

Spot gold was bid at US$976.50/oz in midday trade in London, against US$958.80/oz late in New York on Thursday.