India, the second largest gold consumer in the world should see its gold imports drop 52% in September, after his gold purchases have jumped in August.
Foreign gold purchases have dropped by 214 tons on August 2015.
Imports were valued at 123.8 billion rupees ($ 1.9 billion) for last month.
Shipments jumped in August, jewelers in India having stored their gold purchases. India, however, met strong demand during festivals and wedding season, which will begin this month.
The decline in gold price to a 4 years low in July also boosted gold purchases in India. Prices have since recovered 7% while gold imports will moderate.
Harish Galipelli, head of commodities and currencies at Inditrade Derivatives & Commodities Ltd., said by phone from Hyderabad.
« Most jewelers have already stocked, that’s why they buy more aggressive way. The prices are generally flat and show no leadership pending clarification on the decision of interest rates by the US Federal Reserve. The People are not willing to sit down on stocks and get caught on the wrong foot. «
Gold demand usually peaks in the last quarter of India donated during the country’s festivals and culminates with the start of the wedding season in November. Local demand may rise 15% last quarter compared to last year, the highest level since 2012.
According to the World Gold Council, 50% of Indian wedding expenses relate to gold. It considers that, on average, 20 million marriages occur each year in India. This decrease in gold purchases in India in September could then impact the price of gold.
The gold price for immediate delivery was trading at $ 1152.35 an ounce at 14:10 in Mumbai. The gold price plunged to $ 1077.40 an ounce on July 24, its lowest level since 2010.
Future gold contracts in Mumbai have changed little 26.586 rupees per 10 grams this year.