Gold imports by India Drop by 15%

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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