India resumes gold imports

India will start to import gold again in April 2009 following a two-month freeze on imports, the Bombay Bullion Association has reported.

Between 25 and 30 metric tonnes of the precious metal will be imported this month into the country, with ten to 15 tonnes brought into the country in the first 15 days of April.

India imports between 700 and 800 tonnes of gold a year and recent dips in gold prices have boosted jewellery purchases in the country.

Bombay Bullion Association president Suresh Hundia told the Press Trust of India that as prices started to ease traders had started to place orders for gold.

The Hindu festival of Akshaya Trithya takes place at the end of this month, with many people expected to purchase gold to mark the occasion.

Girish Choksi, a bullion trader, told the Wall Street Journal that demand from jewellery manufacturers has risen by 150kg to 200kg a day.

Meanwhile, a number of leading international banks have increased their 2009 gold forecasts, as precious metals prices remain high, Reuters reported.
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