India gold imports plummet 70%

Steps by the Indian government to curb gold imports to tackle the country's deep current account deficit and shore up the falling rupee, seems to be working.

India is set to lose its position as top gold consumer to China this year after August imports of bullion fell to $650 million.

That's a whopping 70% decrease from July's $2.2 billion figure.

Gold gained 5.7% in August and the higher price drove bargain hunters out of the market.

Indian buyers also had to deal with a rupee at record lows during August.

Seasonal demand as India enters its festival period is predicted to be weak – heavy buying when gold was trading closer to $1,200 an ounce means Indian stocks may have been replenished already.

The Economic Times reports India's Commerce and Industry Minister Anand Sharma said "the fall in imports is expected to continue in the coming months.

"It, however, would not impact the jewellery sector exports as "enough gold is available"."

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