Asia Gold-Premiums soften; Indian weddings stir up trade

* Premiums ease to 50 U.S. cents in Singapore

* Light physical buying from India, Thailand.

* Buyers await more correction in gold price, HK premiums soft

By Lewa Pardomuan and Ruchira Singh

SINGAPORE/MUMBAI, June 29 (Reuters) - Premiums for gold bars dipped in Asia on Monday following bullion's rise to a two-week high, but the physical market saw support from purchases by jewellers in main consumer India and the industrial sector. Gold bars were offered at a premium of 50 U.S. cents an ounce to the spot London prices in Singapore, down from 70 cents last week. Premiums slipped by a couple of cents in Hong Kong but dealers noted some bargain buying. <GOLD/ASIA1>.

"Demand is moderate. Weddings are on in south India so there is some buying especially as people have got slightly used to the current prices," said Ganesh Agarwal, a dealer in Chennai in India's southern state of Tamil Nadu.

"The monsoon might turn out to be a big problem. It could bring down sales by 10-20 percent. But only by end-August can we be sure," he added.

The July-September monsoon, crucial to agriculture and rural incomes, has been delayed and is forecast to be at 93 percent of the long-term average. Demand for gold in India hinges on a good monsoon, which boosts farm output and rural incomes.

Gold XAU= rose $2.15 an ounce to $940.20 in volatile trade on Monday, having earlier dropped to $933.40 on profit taking. Gold hit a two-week high of $948.20 last week but it was still well below a three-month high of $989.80 struck on June 3.

"We heard there's some industrial demand at the lower end. There's some buying interest there," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

"Investors are on still the sidelines," said Leung, adding that investors also keep a close eye on stock markets before buying gold again as an alternative investment.

Asian stock markets retreated on Monday as weaker oil prices hit energy shares and as the second quarter wound down. [MKTS/GLOB]

Investors kept to the sidelines in Singapore but dealers noted physical buying from jewellers in Thailand.

Back to India, bargain buying stirred up trade but dealers remained cautious because fluctuations in the international prices.

"There are short spells of good sales whenever prices fall a bit and then it quietens down. But over the year, our sales are down by about 20 percent," said Harshad Ajmera, a dealer in Kolkata in India's eastern state of West Bengal.

"The monsoon prediction is a worry, but it is a bit early to tell if harvest will be affected. We believe sales can be really strong if prices go to around $900 an ounce," said the dealer, referring to levels last seen in early May.

Indian weddings usually taper off in July before picking up again in August and last until the end of the year as a series of festivals and auspicious days compel people to buy some gold. India's jewellery demand has suffered because of high gold prices and a slowdown in the economy, with consumption falling 52 percent to 34.7 tonnes in the first quarter of this year. (Editing by Ben Tan)