Ahmedabad: First time after demonetisation, Oct gold imports soar to 15.2 MT

For the first time in seven years after the demonetization announcement, gold imports have touched 15.2 metric tonnes (MT) in Gujarat in October. 

The last time yellow metal imports surpassed this level was in November 2016, following the demonetization announcement, when the imports touched 18.65 MT, indicates data by the Ahmedabad Air Cargo Complex (AACC).

Analysts attribute the upsurge in golddemand to a decline in its prices in early October.

Gold prices have gone up from Rs 58,100 per 10 grams in Ahmedabad on October 6 to Rs 63,000 per 10 grams on Wednesday. 

The dip in gold prices came as a boon for jewellers and bullion traders as many stocked up gold anticipating high demand in the festive season.

Ever since the customs-Icegate integration has taken place on GIFT SEZ portal, jewellers are also able to import gold through the India International Bullion Exchange (IIBX) at GIFT City at 1% duty discount under the comprehensive economic partnership agreement (CEPA) between the India and the UAE.

This has also propelled demand for gold according to industry players.

Compared to October 2022, yellow metal imports have nearly doubled and gone up by 85% in a year, driven by more procurements of gold ahead of the festive season as prices dipped.