Gold imports to India declined by 39%

India, the world's second-largest gold user, after China, reported a 39 percent drop in gold imports for the first five months of the year. The data are extremely disappointing and come at an extremely inappropriate time for gold.
The noble metal fails to find its way up, despite the trade war between the US and China, after the entry of reciprocal customs duties on goods worth over $30 billion.
The strong dollar also does not particularly support the price of gold to which the "yellow metal" is in a negative correlation. A traditionally strong dollar is associated with a weakness in the performance of gold.
Imports of India, which almost entirely fuel demand in the country, are considered a serious indicator of metal demand. This is something that gold traders are watching very closely.
The weak rupee since the beginning of the year, which makes gold relatively more expensive for Indian consumers, also largely determines the weak demand for the metal.