MUMBAI (CommodityOnline): Gold imports by India continue to plunge, thanks to high prices and the volatility in the bullion market these days. The Bombay Bullion Association (BBA) said on Monday that India's gold import may fell by about 44 per cent to 10 tonnes in June over the previous month due to high prices and low demand for the precious metal in the domestic markets.

Gold import stood at 18 tonnes in May, according to the data provided by BBA.

"Gold imports in June will be about 10 tonnes as the demand has slowed down following high prices. Unless the prices come down, there will be no improvement in imports," Bombay Bullion Association Director Suresh Hundia told PTI.

Gold prices ruled over Rs 14,600 per 10 grams level in both spot and futures markets last week. In the international markets gold prices were at 938.55 an ounce (28.34 grams).

The import of gold has been sluggish so far this year and is estimated at around 50 tonnes during the January-June period against 139 tonnes of gold shipments into the country in the corresponding period of 2008.

There were no imports in February and March owing to absence of demand in the domestic market following high gold prices, which ruled over Rs 15,000 per 10 grams level.

In April, India imported 20 tonnes of gold due to rise in demand for 'Akshaya Tritiya' -- a festival which is considered auspicious to buy the precious metal.

Meanwhile, gold slipped in the early moves in Asia, tracking the strength in the US dollar and constant worries about the prospects of the commodity in the near term. Traders are almost convinced that though the medium to long term prospects of the commodity look very attractive, the near term outlook may not be so given the failure of the commodity to break above $1000 a few weeks back.

The yellow metal slipped from highs near $1000 at the start of June and given that the green shoots of recovery have become much more prominent since then, there is considerable selling pressure emerging in the asset as prices stay below $950 mark. COMEX Gold futures for August weakened right from the start today, currently hovering at $936.40, down $4.60 per ounce from the previous close. The counter is expected to find a support around $931 mark.

In the global markets this week, the ECB will once again be under the spotlight. It will almost certainly keep its policy unchanged, holding the Refi rate at 1.0% and refusing to commit to any increase in the covered bonds asset program. It will be interesting to see if dollar manages to hold onto its current buoyancy till the meet on Thursday.

Gold at india's largest commodity exchange, MCX was trading at Rs 14585 per ten grams.

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