Gold Glimmer Fades: India's Import Numbers Set to Plunge in December

India's gold imports are expected to drop sharply in December after record purchases in November. With no major festivals and rising prices, buyers are hesitant. This slowdown could stabilize global prices, help narrow India's trade deficit, and support the rupee. Trade insiders anticipate a significant reduction in imports.

India's gold imports are on track for a significant slowdown this December, following an extraordinary surge in November, trade and government officials reported. Without major festivals to boost demand and with rising prices deterring buyers, a decline in imports appears imminent.

As the world's second-largest consumer of gold, a dip in India's imports could temper a global price rally that peaked in October. The reduction may also aid in narrowing India's trade deficit and bolstering the struggling rupee. 'Last month's investments spiked, but now, with the situation stabilizing, a more than 50% drop is likely,' noted IBJA President Prithviraj Kothari.

In November, gold imports surged to a record $14.8 billion, significantly widening the trade deficit and affecting the rupee's value. This record buying spree was triggered by investors capitalizing on a dip in local gold prices. However, with December seeing a price rebound, enthusiasm has waned, prompting dealers to offer discounts to stimulate purchases.

(With inputs from agencies.)