Gold imports by
India, the world’s biggest consumer after China, will probably decline for a
third year as the government keeps curbs on shipments to prevent the
current-account deficit from widening and to support the rupee.
Foreign purchases may
drop 15% to 700 metric tons in 2014, according to the median of estimates from
9 analysts and jewelers including Gitanjali Gems Ltd. (GITG) and Rajesh Exports
Ltd. (RJEX) compiled by Bloomberg.
Imports fell 44% to
350 tons in the first half, government and World Gold Council data show.
Weakening demand from
China & India, which account for
half of global consumption, may limit increases in bullion prices which
advanced 8.8% this year on increasing tensions in Ukraine and the Middle East.
Usage in China
dropped 19% in the first half as investors bought fewer bars and coins. Indian
Finance Minister Arun Jaitley retained import curbs in his annual budget last
month.
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