India’s gold imports are expected to decline sharply in December after record purchases in November due to the lack of major festivals and rising prices causing buyers to delay purchases.

India’s gold imports are expected to drop sharply in December following record purchases in November, as no major festivals and rising prices have delayed purchases.

A slowdown in imports could limit the global gold price rally, which peaked in October, and help reduce India’s trade deficit and support the rupee.

Gold imports in November reached a record $14.8 billion, doubling from the previous month, which widened the trade deficit and weakened the rupee.

Many buyers rushed to purchase gold in November when prices corrected after waiting for a price drop.

Local gold prices fell to Rs 73,300 per 10 grams in mid-November, down from a record high of Rs 79,775 in October.

In December, prices rebounded, discouraging buyers and leading to a forecasted import drop to around $5 billion.

Demand has weakened, with dealers offering discounts of up to $8 an ounce, compared to premiums of $16 in November.

November’s high imports were driven by investment demand and the festive season, with jewellers replenishing stocks after Dussehra and Diwali.

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