Gold imports at 9 mth high at Ahmedabad airport

Backed by moderate pricing, gold imports for the month of May 2019 at Ahmedabad International Airport, rose to a nine-month high of 9.26 tonnes, according to the monthly data of import provided by Gujarat State Export Corporation Ltd (GSECL). Silver imports stood at 0.81 tonnes for the month.

Political and economic uncertainties at national and global level in May also rose the demand of yellow metal, considered as a safe option for parking money.

It was in August 2018 that the gold imports stood at 11.108 tonnes.

Then onwards, the imports remained subdued. Gold imports in the first two months of the financial year 2019-20 stood at 14.56 tonnes, about 67 per cent higher that 8.72 tonnes witnessed in first two months of the previous fiscal. Gold imports in May 2018 stood at 6.85 tonnes.

"Price of yellow metal stood stable around Rs 32,500 per 10 grams, which provided value to the buyers. This raised the demand for gold, causing imports to rise. Prices have now risen by about Rs 1,000 per 10 grams," said Jigar Soni, vice president of Jewellers Association – Ahmedabad.

He said that with prices rising of late, the demand for gold will come down. He has lots of hope from the new government at the centre.

He hopes that import duty on gold will come down to 6-7 per cent and Goods and Services Tax (GST) to be reduced from three per cent to two per cent. "If these two steps are taken, the price of gold will moderate and demand rise," said Soni.

Comparision

• In August 2018 the gold imports stood at 11.108 tonnes. Then onwards, the imports remained subdued. 
• Gold imports in the first two months of the financial year 2019-20 stood at 14.56 tonnes.