One thing is certain that rising gold imports are threatening the current account deficit to widen this year. In April 2021, Gold imports shot up to $6.3 billion on domestic demand compared to $2.83 billion in Apr-20. Gold imports played a big role in trade deficit widening to $15.1 billion in April. Silver imports fell but they are too small. The only hope is that COVID dampens demand for gold, which would at least help the CAD remain subdued.
One thing is certain that rising gold imports are threatening the current account deficit to widen this year. In April 2021, Gold imports shot up to $6.3 billion on domestic demand compared to $2.83 billion in Apr-20. Gold imports played a big role in trade deficit widening to $15.1 billion in April. Silver imports fell but they are too small. The only hope is that COVID dampens demand for gold, which would at least help the CAD remain subdued.