Gold import has recorded a staggering 81 per cent fall in December 2008 on account of high price and poor demand.
Imports stood at mere three tonnes in December 2008, against 16 tonnes during the same month in 2007, according to estimates from the Bombay Bullion Association.
"The demand for gold is likely to be dull till January 15, but it may go up after that if the prices goes down," said Bombay Bullion Association Director Suresh Hundia.
Marriage season ended on December 14 and also there was no other trigger for people to buy gold as the next marriage season starts only in February, he said.
Further, the first fortnight of January is considered inauspicious for purchasing gold that contributed to the fall in gold imports which touched a historic low, Hundia added.
The rise in price also kept people away from purchasing jewelleries, he said.
Hundia said in the last month of 2008, demand for new jewelleries declined as people offloaded their old items for better returns as gold prices climbed higher leading to a stockpile in the domestic market.
Gold today ruled at Rs 13,650 per 10 grams in the domestic bullion market. The precious metal had yesterday closed at 881 dollars an ounce in the international markets.
August 2008, saw the maximum import with 98 tonnes followed by September with 54 tonnes. Gold import during October and November stood at 44 tonnes and 34 tonnes respectively.