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Friday, 5th August 2005 (4321 views)

The Indian gold trade is suffering as a result of the torrential monsoon rains that have lashed western parts of the country recently.<br/><br/>Thousands have died due to the floods and many more have had their homes destroyed or been left stranded.<br/><br/>In Mumbai alone nearly 1,000 have been reported dead this week as streets turned to rivers across India's financial capital.<br/><br/>Pawan Chokshi, a leading trader from Ahmedabad, told Reuters: "People have suffered huge losses because of floods. Gold will be the least important thing on their mind."<br/><br/>The states of Maharashtra and Gujarat, which were most affected by the recent floods, are central to India's gold trade. Overall the country imports more bullion than any other worldwide. <br/><br/>In Mumbai gold imports are down to 100 kg from an average of 1,000 kg. While imports at the port of Ahmedabad have also fallen from 1,200 kg to 200 kg.<br/><br/>Following the decline in imports, traders are now worried that escalating gold prices worldwide will stall demand for the metal in India.<br/><img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=15017366"/>

 

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