India imported 67 tonnes of gold in September

India imported half as much gold in September as in the previous month, according to the previous month Bloomberg based on two sources within the Indian Ministry of Finance who do not want to be named. Imports amounted to 67 tonnes of gold last month, compared to a volume of 141 tonnes in August.

The decline was to be expected, as imports were already much higher than normal in August. Importers benefited from the relatively low Gold price and have therefore already stocked up a lot in this month for the wedding season and the festivals that will soon be back on the Indian calendar. In September, the gold price was already 7% higher than the low point of July, which, according to Bloomberg, explains why less gold was imported last month.

Indians buy a lot of gold in relation to their income, but they are very price-conscious. In July, they bought a lot of gold, forcing suppliers to replenish their stocks. Now that the price is a bit higher again, demand is falling and less gold needs to come from abroad.

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"Most jewellers have already stockpiled and that's why they don't buy as aggressively anymore. Globally, the gold price shows little direction as long as there is no clarity about the interest rate decision in the U.S. People do not want to take a position as long as that uncertainty hangs over the market," Harish Galipelli, a commodities expert at Inditrade Derivatives & Commodities Ltd, told Bloomberg.

Traditionally, the demand for gold in India peaks in the fourth quarter, as the precious metal is often given as gifts at festivals and weddings. And the fourth quarter is the season in which these occur most often. According to Bachhraj Bamalwa of the All India Gems & Jewellery Trade Federation, domestic demand for gold in the fourth quarter of this year could reach its highest level since 2012.