Kochi: Gold imports have started rising once again after plummeting in the wake of the COVID crisis.
The imports of the precious metal hit an eight-month high in August. India, the world's second-largest gold consumer, imported 60 tonnes of gold last month, which is almost double from the same month last year. Imports in August 2019 were 32.1 tonnes.
The value of imports rose to $3.7 billion (Rs 27,000 crore) in August, up from $1.37 billion (Rs 10,000 crore) last August.
The main reasons for the increase in imports are the high demand for gold as an investment and the easing of lockdown restrictions.
The demand from investors was also at an eight-month high.
Gold imports had reduced sharply since December 2019, falling to just $2.8 million in April following the lockdown.
They began to rise again since July. The country had imported gold worth $1.78 billion (Rs 13,000 crore) in July.
Gold prices volatile
The price of gold fell by Rs 320 per sovereign and Rs 40 per gram on Wednesday. With this, the price of a sovereign of gold stood at Rs 37,480, while a gram cost Rs 4,685.
A day before on Tuesday, the price of a sovereign of gold had risen by Rs 200. The strengthening of the rupee has been causing a fall in the price of gold.
In the international market, the price of gold is $1,965 per ounce. The price had touched $2,081 before falling.
In Kerala, the price had increased to Rs 42,000 a sovereign and the price fell by Rs 4,520 in just 26 days
