October Gold Imports Fall By 27% Against Tones - Nov 06, 2008

Gold imports came down 27% to nearly 44 tones in October against 60 tones registered in the same period last year mainly due to a sharp fall in the value of Indian currency against the dollar. It was down by 45% compared to imports of 64 tones in September. During the month of October the value of rupee depreciated by nearly 9% against the dollar from 47.95 to 52.35. Prices fell from Rs 13,200/ 10 gm to Rs 11,795/10 gm on October 30, a drop of 11%. The annual gold demand in India is about 850 tones; it slid to 727 tones in 2007 due to a sharp rise in prices. Given the economic recession, the demand is expected to fall further in 2008.