Asian Gold Buying Spree Lifts Premiums

THE PREMIUM paid by gold dealers in Asia has risen this week as jewellers rushed to Buy Gold ahead of religious festivals, according to news reports.

Premiums for Gold Bars in bullion trading centres in Singapore and Hong Kong were pushed up by steady demand for physical gold and supply tightness. Dealers saw purchases from consumers all over Asia – in China, Thailand and Indonesia.

Local Gold Prices in Singapore stood $0.70 an ounce above the London spot price in Singapore, while Chinese jewellers Buying Gold stirred up trading in Hong Kong, with some dealers there offering Gold Bars at premiums of 80 cents, up from 50 cents last week.

Indian dealers are now preparing for a round of religious festivals starting in August, when demand for Gold Bullion picks up and the wedding season starts.

In India, jewellery is the most common gift during religious festivals and weddings. A senior official at a bullion dealing bank said, “They don’t want to miss this chance of a dip before festivals.”

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