Gold imports have declined by 54 per cent in May as prices have soared in the international as well as domestic markets.
India, the largest importer of the precious metal, imported 32 metric tonne of gold in May while the shipments stood at 69 tonnes in same month a year ago, according to a provisional data compiled by the B-ombay Bullion Association, which represent nearly 250 companies in the bullion trade.
Imports in the peak season of November and Dece-mber last year fell to 12 metric ton, 75 per cent lesser compared to the shipments in the corresponding period in the previous year.
Bombay Bullion Associ-ation President Suresh Hundia said, "High prices, which are ruling over Rs 12,000 per 10 gram, has faded demand for gold. The rates are now better than that seen in November and December," said the association president Suresh Hundia.
The prices have advanced 31 per cent in the past year, touching a record $1,030.7 an ounce in March in the global markets, eroding the demand all over the world, he said.
The metal usually moves in tow with crude oil as the latter signals inflation while the metal is used as a hedge against it.