Gold prices may see some correction as imports have resumed after a gapof two months. In January, only 20 tonnes of the yellow metal was imported. Although demand was low and suppliescame in the form of scrap gold in February and March, most jewellers carriedonly limited stocks. Since prices have moderated now with demand picking up,jewellers have started stocking up again.

Till now in April, 10 tonnes of gold have been imported and nearly 20-25 tonnesof further import are expected in the next couple of weeks. Rising inflows anda slowly appreciating rupee may see prices in the spot market moderating to Rs13,700 or even lower next week.

During the week, prices have fallen by Rs 220, or 1.54 per cent, to Rs 14,075per 10 gm. In the London market, prices have come down by $12.85, or 1.46 percent, to $868.80 per ounce. Silver has seen a sharper fall as prices came downby 2.63 per cent to Rs 20,550 per kg.

London silver was down by 3.96 per cent to $11.88 per ounce. Silver has fallenbelow $12 for the first time in the last one month. Silver imports may rise incoming days as industrial demand is expected to increase. Though investmentdemand is still poor for the white metal.

Internationally, some profit booking has been seen from investors. SPDR, thelargest US exchange-traded fund, has seen largest outflow of gold in the lastsix months during the past couple of days. On Thursday alone, outflow from thisfund was 8.25 tonnes. SPDR still has 1,119 tonnes of gold.

In India, Akshya Tritiya is expected to generate demand for jewellery. Soundingskeptical, Shah said, “It may be a big hype and we really have to see how muchdemand it generates.” The strengthening rupee may also result in a lower costof imported gold.

Some traders were also unsure about the Akshaya Tritiya demand. Some demand mayemerge on moderating prices, but it was difficult to say if that could supportgold prices, said one of them.

Globally, Indian demand is considered important as investors are booking profitin gold and shifting money towards stocks. However, this may be a short-termphenomenon as in the medium term, gold is expected to go up