Gold Q1 imports down 50% due to down-stocking by traders: WGC

 India's gold imports in the first quarter of this year has dipped by 50 per cent to 153 tonne compared to the same period last year due to down-stocking by traders, according to the World Gold Council (WGC).

Imports stood at 260 tonne in the corresponding quarter (January-March) of 2017, according to data by WGC. The total gold imports are likely to be on similar lines with consumer demand, which is pegged at 700-800 tonne this year, WGC India managing director PR Somasundaram told PTI here. "Imports are likely to be on similar lines as demand this year," he added.

The net imports in 2017, stood at 888 tonne in 2017, and 558 tonne in 2016, according to data from WGC. "Imports in the first quarter dipped mainly on account of subdued consumer demand, down-stocking following the GST transitional period and also on expectations of duty cut in the budget," Somasundaram said. Meanwhile, he said, the positive sentiment following the announcement in the Union Budget about an impending gold policy to make gold an asset class will also boost the industry momentum to get more organised and transparent and build a strong case for a central gold body under the gold policy, he added.