The headline fact is that Indian imports have hit a 21-month high amid strong retail demand during February.
Overall, gold prices fell in February.
The domestic gold price in fact closed 5.6% lower in February at Rs46,425/10g1
This lower domestic gold price plus the wedding season purchases contributed to a robust retail demand during February
India’s reported imports hit a 21-month high and the local market premium further strengthened
Overall, lower gold prices added to a high stock market volatility created ETF inflows. Total holdings for Indian gold ETFs added to 30.2t by the close of February; this amounted to a net inflow of 1.1t
In addition, the Reserve Bank of India (RBI) put in 11.2t of gold to its reserves during the month, which took total gold reserves to 687.8t.