India, the biggest importer of gold, probably imported 35% lesser gold in July as high prices of the precious metal dented demand.
As India imports most of its gold, the depreciating rupee has driven the prices of the yellow metal to records highs, despite prices cooling off in the international markets.
Purchases may drop to 40-50 tonnes in July, down 35%, according to Prithviraj Kothari, president of the Bombay Bullion Association, reports said.
“Inflation is high, the equity market is negative and the real estate market is on the downside, so it all impacts the purchasing power. There may be an improvement in demand in August ahead of the festival season, but it will depend on the prices,” reports said quoting Kothari.