India\u2019s gold imports plunged 86% year-on-year in June due to record high prices, international air travel being banned and many jewellery shops remaining shut amid a nationwide lockdown to curb the spread of COVID-19, a government source said.<\/p>\n
The world\u2019s second-biggest consumer of the precious metal imported about 11 tonnes of gold in June, a steep fall from the 77.7 tonnes a year ago, the source, who asked to remain anonymous, said.<\/p>\n
In value terms, June imports dropped to $608.8 million from $2.7 billion a year ago, he added. Gold imports in the quarter ended June plunged 96% from a year earlier, to 13 tonnes, the official said, after shipments virtually ground to a halt in April and May.<\/p>\n
Chennai, Delhi and Mumbai generate significant demand but in all three cities, COVID-19 cases have been rising and thus preventing potential customers to shop, said Surendra Mehta, secretary at the India Bullion and Jewellers Association.<\/p>\n
Retail demand muted<\/h2>\n
Jewellers are not making purchases from banks as retail demand is subdued, said a bullion division head of a Mumbai-based private bank.<\/p>\n
\u201cFor the next two-three months, demand would remain weak as buyers are waiting for a correction,\u201d he said. Gold imports could fall below 15 tonnes in July, down from last year\u2019s 39.7 tonnes, said another dealer.<\/p>\n<\/div>\n