The falling price of gold has already begun to affect imports. Bombay Bullion Association president, “The imports of the yellow metal is likely to be 25 per cent less [in April] than the corresponding month last year as the gold prices are declining steadily. Usually, when the prices drop traders hold back in anticipation of further decline, while they buy when prices rise with the fear of additional increase in rates”.

And India’s investors, who have been stocking up on the precious metal for years, won’t see this price drop as anything but good news. “A lot of investors have gold in their portfolio but they have physical gold coins or jewellery”, Kishore Narne, head of commodities at Motilal Oswal, told beyondbrics. &ldquo...