Gold loses shine as imports collapsed in 2018 due to high domestic prices

Demand for gold, almost all of which is imported, has been declining in India as a slump in the rupee made the metal more expensive in the price-sensitive market

Gold imports by India tumbled by a fifth last year as high domestic prices deterred buyers in the second-biggest consuming nation and local stores remained well-stocked, highlighting a headwind to global consumption even as bullion in dollars gains on renewed haven demand.

Overseas purchases fell to 762 metric tons in 2018, a 20 percent slump from the previous year, according to a person familiar with the data, who asked not to be identified as the numbers aren’t public. That would make it the second smallest amount shipped into the country this decade. In January, imports shrank 23 percent to about 60