May Indian Gold Imports Expected To Fall To 17-18 Tonnes

According to a report by Reuters India, which pegs April imports at 28.6 tonnes, May's is expcted to fall to 17-18 because of higher prices.

May imports fell to around 17-18 tonnes from 28.6 tonnes in the same month a year ago, the head of Bombay Bullion Association (BBA) Suresh Hundia, told Reuters on Friday.

He said the provisional data indicated that India's demand would remain weak for the rest of the year if prices remain near record levels or scale new highs.

"Imports fell because prices were too high," Suresh Hundia, president of the BBA told Reuters. "If it stays like this, imports in the full year will fall by 50 percent."

He also said, though, that imports for the first five months of this year will exceed those for the first five months of 2009.