Gold Glimmers as Trade Deficit Shimmers: November's Economic Upsurge

India is investigating calculation errors in November's gold imports, which quadrupled and heightened its trade deficit to a record USD 37.84 billion. Gold imports surged due to festival demand, global uncertainties, and reduced customs duties, positioning gold as a top-performing asset despite widening current account deficit issues.

The Indian government is scrutinizing potential calculation errors in November's gold import data as the import surge amplified the trade deficit to an unprecedented high. The rupee simultaneously plummeted to an all-time low, intensifying economic concerns.

November saw gold imports soar to a record USD 14.86 billion, marking a four-fold rise predominantly propelled by festival and wedding demands. This increase, coupled with global uncertainties and reduced customs duties, underscores gold's allure as a safe investment asset.

Rising gold imports, while spurring strong investor confidence, have strained India's current account deficit. Concurrently, gems and jewellery exports witnessed a decline, spotlighting the need for strategic economic adjustments and trade agreement reviews, particularly with the UAE.

(With inputs from agencies.)