Citing a government source, Reuters reported on Thursday that India's Gold imports plunged 76% in January from a year earlier to a 32-month low, as record high domestic prices dented physical demand.

The drop in Gold imports could be also attributed to jewelers postponing their purchases, hoping for a reduction in import duty.

Additional takeaways

India “imported 11 tonnes of gold in January, compared with 45 tonnes a year earlier.”

“In value terms, January imports dropped to $697 million from $2.38 billion a year earlier.”