India has bought a record amount of gold in August 2021 according to a Reuters report. As the gold rates are increasing in the international markets, India is also enhancing its gold imports. However, in August during the second week, gold prices went record downs due to improved US jobs data of July, making it a profitable buy for India. In August, India's gold imports were at the highest position in the last 5 months. India has imported 121 tonnes of gold in August 2021, compared to 63 tonnes in the same month last year. This translates to August imports of $6.7 billion from $3.7 billion a year ago. Before the upcoming festive season and wedding season, this accumulated gold stock will help to meet the country's gold demand.
In September India's gold import can rise more than 80 tonnes, while it was a mere 12 tonnes in the last year, same month, according to industry insiders. In the first eight months of 2021, India tripled its gold imports to 687 tonnes from the lower base of 2020. As the US employment data and non-manufacturing index of August came out as a disappointment, the gold rates will gain later in the international market, thereby reflecting the same trend in the Indian cities. Expecting this, investors will probably show more interest to buy the gold this month only, and the augmented gold import will be utilized. Today, on September 6, the 22 carat gold rate was quoted at Rs. 46,530 per 10
grams, while 24 carat gold rate was quoted at Rs. 47,530 in India.
India's retail gold business is again popping up, along with other virtual gold buying options as the buyers are now allowed to step out more from home than were during the lockdown. Typically in the wedding season, Indian buyers invest in more gold jewelleries than at any other time. India's economy also started to pick up the pace recently due to
relaxed norms. With a better employment scenario, the consumer appetite will grow along with buying capacity, making it a suitable ecosystem for the physical gold business. Hence, importing more gold to push the domestic market is certainly a good decision made by the policy-makers.