According to foreign media on February 16, India's gold import volume in January fell by 76% compared with the same period last year, hitting a new low of 32 months, because the domestic gold price rebounded to a historical high, which led to the inhibition of demand; And Indian jewelers delayed their purchases, hoping that the government would reduce the number of importing countries.

Sources said that India imported 11 tons of gold in January, down from 45 tons in the same period last year. In terms of price, the import volume in January was 697 million US dollars, down from 2.38 billion US dollars a year ago.

The decrease in import volume is mainly due to the fact that in January 2023, India's domestic gold futures rose to a record high of 57270 rupees per 10 grams, resulting in the suppression of retail demand. On the other hand, jewelers and gold traders hardly bought any gold in late January, because they expected that the government would cut the gold import tax in its annual budget to curb the increase in smuggling activities. However, the Indian government did not cut the import tax on gold in the budget submitted on February 1, but raised the import tax on silver.

At present, the local gold price in India has dropped by nearly 5% from its historical high, which helps to attract retail consumers. Therefore, the import in February will improve, and dealers and jewelers need to build inventory for the wedding season.

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