NEW DELHI: The decline in gold prices in November had created a favourable environment for traders. Compared to previous months, India's gold imports reached a high in November. However, experts say that there has been a significant decline in gold imports to India in December. Experts attribute the decline to the subdued festive season and the recent surge in gold prices.

India is one of the largest consumers of gold in the world. The rise in global gold prices in October led to a decline in gold imports, which in turn affected trade and led to a drop in the value of the rupee. However, gold imports surged in November due to increased demand for investment and jewellery, according to Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA). But now, the situation has changed, and gold imports in December are expected to be only half of what they were in November, according to Kothari.

Last month, gold worth $14.8 billion was imported, pushing trade to record highs. Most traders are waiting for gold prices to drop, anticipating the opportunity for further imports, according to a trader based in Mumbai. The price of 10 grams of gold had reached a record high in October, with the market value of 10 grams at Rs 79,775 at the time. However, by mid-November, this price had dropped to Rs 73,300.

However, the rebound in gold prices in December is expected to bring down gold imports to around $5 million. A customs official (name withheld) told national media outlets about the decline in gold imports. Meanwhile, gold prices witnessed a slight decline today. The price of 22-carat gold dropped by Rs 120 to Rs 57,080 per sovereign, compared to the previous day.