MUMBAI (Commodity Online): India’s gold imports are steadily sliding and in July it stood at 7.8 tonnes from 24 tonnes in the same month last year. A steady fall in demand due to high prices is the reason for the  decline in imports.

Imports were at 7.8 tonnes in July 2009 compared to 24 tonnes in the same month last year, a 67.5 per cent decline.

The demand for the precious metal declined as the prices hovered between Rs 14,500 to Rs 15,000 per 10 gm level in the domestic markets.

Multi Commodity Exchange October gold was ruling at Rs 14,865 per 10 gm this week, while in global markets it was at $935.8 an ounce (28.34 gm).

Gold imports have been sluggish so far this year and was at 59.4 tonnes during January-July 2009, compared to 163 tonnes in the same period last year, the data revealed.

In January, only 1.8 tonnes of gold was imported followed by no imports during February and March due to lack of demand.

In April, the country imported 20 tonnes on account of Akshaya Tritiya, a festival considered auspicious for buying gold.

However, analysts say the fall witnessed in equity markets across the world today will put pressure on all metals, including precious metals.

The dollar index has taken a sharp rally due to 5.8 per cent, the largest ever, fall in Chinese equity market.

The dollar index on Monday strengthened by 0.7 per cent putting pressure on gold.

This may encourage people to invest in gold and may boost imports.

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