India''s Jan-March gold imports down nearly 24 pct, April continues slide-trade body

MUMBAI, April 15. - India''s gold imports havefallen nearly 24 percent in the first quarter and probablydropped at the same pace in April, the head of a major tradebody said on Monday, as importers sit on stocks bought beforeglobal prices slumped towards two-year lows. India is the world''s biggest buyer of bullion and itsgovernment has raised import duty by 50 percent to curb imports,which helped push the current account deficit to a record 6.7percent of gross domestic product in the December quarter. India imported 200 tonnes of gold in January to March, down23.67 percent from the same period of last year, Mohit Kamboj,president of the Bombay Bullion Association, told Reuters. Lastmonth''s imports will be 25 percent lower than the 71 tonnesshipped in April last year, he added. Ahead of the tax increase in January, gold imports surged 23percent year-on-year as buyers stocked up. But global anddomestic prices have fallen as much as 15 percent since then,and gold sank to a two-year low on Monday. "They are losing confidence in gold as prices have fallen to$1,439 (per ounce) from the top of $1,900 in the last one year,"Kamboj said. "With more and more countries reducing stocks the future ofgold seems bleak," said Kamboj, referring to Cyprus and othercountries in the European Union. Internationally, investors have dumped gold and flocked toequity markets in recent weeks as Cyprus plans to sell goldreserves to raise around 400 million euros ($525 million). Thathas raised concerns that other indebted euro zone countriescould follow suit. Even escalating tensions on the Korean peninsula have failedto burnish gold''s safe-haven appeal. In India, buying has also been hit by a falling rupee, whichmakes domestic gold more expensive than its global counterpart,which is priced in dollars. The rupee has eased about 1.5 percent against the dollarsince Jan. 21 when the import duty was hiked to 6 percent. "All jewellers are seeing there could be a further fall, sothey are waiting for 25,000 rupees ($460) levels," said Kamboj,referring to the price per 10 grams. Indian gold futures have not fallen below that level sinceSeptember 2011, when they started a rally which took them to2012''s record highs. The level has become something of apsychological floor as a result. Indian gold futures hit 27,100 rupees per 10 gramson Monday, their lowest level since Dec. 31, 2011 and about 17percent down from their peak of 32,464 rupees struck in Novemberlast year.