By Ruchira Singh
(Reuters) - India's gold imports fell an annual 39 percent in May, as record prices hit demand in the world's top consumer at a time when sales were expected to rise because of a Hindu festival.
May imports fell to around 17-18 tonnes from 28.6 tonnes in the same month a year ago, the head of Bombay Bullion Association (BBA) Suresh Hundia, told Reuters on Friday.
He said the provisional data indicated that India's demand would be weak for the rest of the year if prices remain near record levels highs or increase more.
"Imports fell because prices were too high," Hundia told Reuters. "If it stays like this, imports in the full year will fall by 50 percent".
Gold prices in the local market struck several record highs in May on the back of international gold markets and the rupee that weakened against the dollar.
