Domestic gold traders seen getting supplies in next two weeks

Last Updated: Wed, Oct 09, 2013 12:38 hrs

​Domestic gold traders in India, struggling for supplies in the peak festival season, may start getting the yellow metal in the next two weeks under the new import rule, where exporters get a priority on shipments, officials at importing banks said.

Imports of the yellow metal into India, the world's biggest buyer of the metal, had virtually stopped since July 22, when the government tied imports for domestic consumption with exports.

"Demand has already started but unfortunately domestic supplies are not available right now. We are still waiting," said Haresh Soni, chairman of All India Gems and Jewellery Trade Federation, adding "recycled gold is the source for organised market."

Jewellery exports are expected to witness a revival, said trade secretary S.R. Rao, which may be positive for domestic jewellers, potentially increasing supplies in the domestic market in coming months.

"We have already given some amount to domestic jewellers in Kolkata. It will take another week to 10 days for domestic jewellers to start getting supplies," said a official with a bullion-importing private bank in Mumbai.

India's gold demand could rise as much as 15 percent this quarter to 300 tonnes as pent-up demand following a good monsoon keeps the country on track for yearly demand estimated at 1,000 tonnes.

More from Sify: