India's gold imports down

       India's gold imports in August slumped by more than 85% from a year earlier as high prices and weak monsoon rains dented demand, the top official of Bombay Bullion Association (BBA) said yesterday.
       BBA president Suresh Hundia told Reuters provisional figures showed imports of between 12 and 14 tonnes in August, compared with imports of 98 tonnes last year.
       "Gold prices are high and so are the prices of everything else. The monsoon is also not good," Hundia said.
       Gold on Multi Commodity Exchange of India traded at 15,094 rupees ($309.24)per 10 grammes yesterday afternoon,down 0.21% from Monday's close.
       India's monsoon has been about a quarter below average up to late August,pushing up prices of most essential commodities in anticipation of a poor harvest this year.
       For January to August, BBA data showed gold imports of 84.6 tonnes,down 68% from the same period last year.
       Dealers in banks said sales had improved in August compared to the previous months due to the start of the festival season, which will peak around Diwali in October."Our sales are 30%down in August compared to last year,"said one dealer in a bank in Mumbai.
       "There was some demand, but very light," said Afshin Nabavi, head of trading at MKS Finance, a Geneva, Switzerlandbased supplier.
       Hundia and dealers were still hoping for a demand revival around big Hindu festivals such as Dussera, Diwali and Dhanteras, but said prices must fall by around 1,000 rupees for a big pick-up.
       If prices were to fall to around 14,000 rupees per 10 grammes,"there will be bumper sales," said Amit Mittal, marketing manager at M.D. Overseas Ltd, a large importer in New Delhi.