ScotiaMocatta official sees India gold imports dn 20-25% in 2012 .

--ScotiaMocatta official says India Jan-Apr gold imports "marginal"

MUMBAI - India's gold imports are seen down 20-25% in 2012 due to subdued
demand for the precious metal, said Rajan Venkatesh, managing director-India
bullion, ScotiaMocatta, one of the largest gold importers in the country.
In 2011, India imported 969 tn of gold, according to the World Gold Council.
The council has estimated India's gold demand in Jan-Mar at 207.6 tn,
down 29% on year.
Venkatesh declined to comment on how much imports had fallen in Jan-Apr
but said the country's imports were "marginal".
After the government doubled import duty to 4% in the Budget for 2012-13
(Apr-Mar) in March, demand for gold has fallen significantly. Record high
prices have also dampened sentiment for the yellow metal.
But Venkatesh remains bullish on gold prices as he expects the global
economic crisis to push up safe haven buying in the next few months.
Venkatesh said gold is likely to touch $1,700 an ounce in the near term.
"It (gold price) is likely to go closer to $1,850-$1,900 (an ounce) by
the year-end," he said.
Today, spot gold on COMEX was around $1,560 an ounce.
The continued fall in rupee against the dollar will also keep domestic
gold prices at record high levels, as a weak rupee makes import of
dollar-denominated commodities such as gold more expensive.
Venkatesh is also bearish on the rupee and sees the Indian currency
slipping below 57.00 against the dollar. "Due to the huge (dollar) outflows
on account of oil imports, rupee is likely to breach 57," he said.
Today, the rupee hit an all-time low of 56.00 against the dollar.
In Mumbai, spot pure gold was around 29,100 rupees per 10 gm, near its
record high of 29,460 rupees hit earlier this month.