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An Indian government source said late Tuesday that the country’s gold imports plunged 48% in January over the year, per Reuters.

The imports for the yellow metal fell to its lowest in four months as buyers shunned their purchases amid record-high local prices.

Key Details

“India imported 36.26 tonnes of gold in January, compared with 69.51 tonnes a year earlier.

In value terms, January imports totalled $1.58 billion, down from last year’s $2.31 billion.

Gold futures in India hit a record high 41,293 rupees per 10 grams in January after rising nearly a quarter in 2019.”

Meanwhile, a bullion division head of a private bank said: “Consumers are struggling to adjust with higher prices. They have risen too much, too fast. Many potential customers are delaying purchases hoping prices will correct.”

Gold bid in Asia

Gold (futures on Comex) are seen on the bids around $1560 amid negative Treasury yields and S&P 500 futures. However, the further upside appears capped by the risk-on rally in the Asian equities.

China’s coronavirus-related news will continue to play a key role in the broader market sentiment.