India’s June gold imports treble on price correction

India’s gold imports in June nearly trebled from year-ago levels on correction in prices and as jewellers replenished inventories after robust sales during a key festival, a government source said on Tuesday.

Higher imports by the world’s second-biggest bullion consumer could support benchmark gold prices , but the surge may increase India’s trade deficit and put pressure on ailing rupee .

The country had imported 49 tonnes of gold in June, compared with 17 tonnes a year earlier, the source said on condition of anonymity as he is not authorised to speak to media. In value terms, June imports surged to $2.61 billion from $969 million a year ago, he said, adding that India’s gold imports still dropped to 335 tonnes in the first half of 2022 from 493 tonnes last year.

Buying gold is considered auspicious during the annual Hindu and Jain festival, celebrated in the first week of May.

Local gold futures fell close to the lowest level in three months in June.