BW Communities

Jewellers, Investors Chase Bullion

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Top buyer India was in the physical market as the wedding season gathers pace, while consumers from Thailand, Indonesia chased gold bars, with bullion prices already losing more than 5 percent since striking a record around $1,575 on Monday. Gold bars were offered at premiums as high as 85 cents to spot London prices in Singapore, up from 50 cents earlier this week and also last week. Dealers noted physical buying on silver by bargain hunters in Singapore and Hong Kong. "I guess everyone thinks we have tonnes of gold bars lying around that buyers can just grab and go, and worst of all, they are still shopping for bargains," said a physical dealer in Singapore, who sells gold bars at a premium of 85 cents. "But we dare not commit for anything that will not be on the shelf for them or will arrive later than next Wednesday," he said, referring to tight gold supplies in Singapore. Gold rose more than 1 per cent, headed for a 5-per cent drop from a week earlier, its worst week since March 2009. Silver turned negative, falling more than 1 per cent after earlier rebounding from its biggest one-day dollar fall since 1980 in the previous session. "We're seeing buying from Indonesia, Thailand and basically from everywhere. We are quoting gold bars at 80 cents premiums," said another physical dealer in Singapore. "There's good buying around for gold and silver," said the dealer, referring to demand from India. India celebrates Akshaya Tritiya, a gold buying festival, on Friday, followed by the wedding season that will last through May. Gold jewellery is a popular gift at marriages and festivals in India. Premiums for gold bars in Mumbai jumped to $1.5 to $1.8 an ounce to spot London prices from about $1.2 a week earlier due to limited supplies. For silver, suppliers charged premiums of 15 to 20 cents an ounce, steady from last week. Dealers in Hong Kong, a centre for bullion trading in East Asia, offered gold bars at a premium of up to $1.7 from $1 an ounce last week. Demand from jewellers helped stir up trade, but consumers in mainland China were on the sidelines. "We haven't seen any significant change in buying interest since the prices dropped sharply, as people see it as a normal correction after prices rallied rapidly to the record above $1,570," said Yang Lutao, deputy general manager of Tianxinyang Gold Industry in Sichuan, which sells gold bars to retail investors. Premiums for silver were steady in Hong Kong at $1 to spot London prices, although there were also higher offers as demand picked up after prices tumbled from record. "I am quoting silver premium at $1 and basically we don't have much stock around. But I heard that some people are selling it at premiums of $2 to $3 for smaller size silver bars," said a dealer in Hong Kong. Lack of demand from the industrial sector kept gold bars at zero premiums in Tokyo, while a drop in Tokyo gold futures also encouraged buyers to wait for cheaper prices. Tokyo financial markets were closed from Tuesday to Thursday for holidays. The most active gold contract on Tokyo Commodity Exchange, currently April 2012 , fell as low as 3,835 yen ($47.67) a gram, its lowest since early April, tracking declines in equities. "There's no change in premiums. I think people are waiting for cheaper prices and some industrial companies are still on a holiday mood," said a dealer in Tokyo. (Reuters)