Two-fold jump in gold imports in August as traders replenish inventory

The fall in gold prices internationally prompted the jewellers to buy gold amid fears that the falling rupee might take away the lower price advantage

With the fall in gold prices internationally, jewellers and traders imported 100 tons gold in August to augment their inventories before falling rupee takes away the lower price advantage. However, the sudden jump in import has again raised current account deficit worries.

According to GFMS Thomson Reuters estimate, import of gold in India was 100 tons as compared to 46.2 tons in August last year, resulting in doubling of import bill for gold in August. Gold import bill for August 2017 was $1.89 billion. Import growth in tons is 116.5 but the average gold price in the international market in