Asia Gold-Jewellers chase premiums up as bullion tumbles

By Lewa Pardomuan

SINGAPORE, April 30 (Reuters) - Jewellery makers from India to Indonesia have stepped up purchases after bullion dived to its lowest level in three months, pushing up premiums for gold bars in Southeast Asia.

Gold <XAU=> dropped from New York levels to around $872.95 on Wednesday, hovering near its lowest since late January at $868.20 on Tuesday, and has lost more than 15 percent in value since spiking to a record high at $1,030.80 on March 17.

The price drop spurred buying from jewellers and bargain hunters, which helped push up premiums for gold bars to 75 U.S. cents an ounce to the spot London prices in Singapore, from 70 cents last week. <GOLD/ASIA1>.

Dealers saw buying from India, the world's largest gold consumer ahead of a religious festival in May, as well as demand from jewellers in Thailand, Vietnam and Indonesia, which is Southeast Asia's main buyer.

"The price is considered cheap now, that's why people buy back," said said Leo Hadi Loe, a consultant with Jewellery Indonesia, a Jakarta-based firm promoting gold in Indonesia.

"When the price was above $900, many people sold their jewellery to be melted. The feeling is that the gold price will even fall further."

A combination of profit taking and recently, oil's drop from its record peak and a surging dollar ahead of an interest rates decision by the U.S. Federal Reserves, have knocked gold off record highs.

"Indonesia is buying physical, and we've been selling gold to jewellery makers and other bullion dealers. India is also in the market. That's why premiums are quite high," said a dealer in Singapore.