Exclusive: India's March gold imports set to drop 90% as prices surge-sources
India's gold imports are expected to drop by over 90% in March, reaching their lowest level since the COVID pandemic, as banks cut imports due to record-high prices. This could limit a rally in global prices that hit a record high earlier this month on expectations that the Federal Reserve will cut interest rates this year. India's gold imports are likely to fall to 10 to 11 metric tons in March from 110 metric tons in February. Gold imports in March 2024 are expected to be the lowest since the COVID pandemic when air traffic restrictions limited imports and lockdowns led to the closure of jewelry shops. Additionally, the dealer stated that jewelers are no longer purchasing gold from banks since clients are trading in their old jewelry for new due to the high pricing. Because they are unable to provide significant discounts, refiners have all but ceased importing gold a semi-pure alloy, according to Harshad Ajmera, owner of JJ Gold House, a distributor in Kolkata, an eastern metropolis. According to Ajmera, although the import tax on unrefined gold in India is 0.65% more than that on refined gold, refining is not profitable due to the market discount, which was greater than 1%.