Gold imports by India, the world’s biggest consumer, fell in November after the biggest monthly price gain in nine years and terror attacks on the country’s financial capital last week deterred jewelry buyers.
Purchases dropped 26 per cent to about 40 tonnes from 54 tonnes a year earlier, according to provisional estimates from the Bombay Bullion Association Ltd, a grouping of 230 traders. Gold gained 14 per cent in November, the most since September 1999.
Terrorists attacks in luxury hotels, a railway station, a cafe and a Jewish centre in Mumbai on November 26 killed 195 people, making it the worst terrorist strike in India in 15 years.
“There were no imports or trading in the last four days of the month because of the terrorist attacks,” said Suresh Hundia, president of the association, in a telephonic interview today. “There was no real demand as high prices kept buyers away.”
The sharp fall in imports by the world’s largest importer and consumer of gold was a result of high international prices coupled with lower working days in November, Hundia said.
Bullion fell as much as 6 per cent yesterday to below $800 an ounce for the first time in a week as the dollar strengthened and crude slid, dimming its appeal as an inflation hedge. Commodities markets are heading for the biggest drop in 25 years as the US, UK, Japan and the 15 European nations that use the Euro slip into a recession.
“The decline may prompt jewellers and refiners to buy more in the coming weeks to meet a rise in demand during the marriage season,” said Hundia. “Prices may fall further as commodities across the board are headed downward.”
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Gold for immediate delivery changed little at $769 an ounce in Mumbai.
Gold for February delivery fell 0.9 per cent to $769.60 an ounce in after-hours electronic trading on the Comex division of the New York Mercantile Exchange.
Gold futures on COMEX, the electronic trading platform of New York Mercantile Exchange, was in the $698-833 an ounce range in November.