India's Gold Imports Surge to $3.1 Billion in April, Tripling from Last Year

In a significant increase from previous figures, India imported gold worth $3.115 billion in April 2024, as reported by the country's Ministry of Commerce and Industry. This marks a more than threefold increase compared to April of the previous year and a doubling from March 2024. Kavita Chako, an analyst from the World Gold Council, noted that the sharp rise in March's import volumes could have been influenced by a spike in prices and an increase in the supply of recycled metal.

Chako had previously forecasted that high gold prices, fewer weddings due to seasonal trends, and disruptions from the general elections would continue to suppress consumer demand. However, she suggested that price stabilization in anticipation of the Akshaya Tritiya festival—a traditional buying occasion in India—might alleviate some of these pressures. Furthermore, Chako believes that the current price dynamics could boost investment demand for gold.

For the first four months of 2024, India's gold imports have totaled $12.706 billion, marking a 1.7-fold increase over the same period last year. By the end of 2023, India had imported nearly 744 tons of gold valued at $42.581 billion. This represented a 4% increase in volume and a 16% increase in value compared to the previous year.

India remains one of the largest consumers of gold globally, with very little domestic production. The country's substantial demand for gold is primarily driven by cultural and traditional factors, making it a significant player in the global gold market.