India's gold imports treble in June on price correction – Reuters

India's gold imports in June grew roughly threefold from a year ago as the XAUUSD price corrected sharply, a government source cited by Reuters on Tuesday.

Also read: Gold Price Forecast: Recovery appears limited by $1,821, with death cross in play

Key takeaways

Jewellers replenished inventories after robust sales during a key festival.

The country had imported 49 tonnes of gold in June, compared with 17 tonnes a year earlier.

In value terms, June imports surged to $2.61 billion from $969 million a year ago.

India's gold imports still dropped to 335 tonnes in the first half of 2022 from 493 tonnes last year.

On Friday, the country’s Finance Ministry announced that it increased import tax on gold from 10.75% to 15% in response to an increase in gold imports that placed pressure on the current account deficit (CAD). The move was directed at lifting off the bearish pressure on the Indian rupee.