Do More With Reuters
Partner Services

Asia Gold-Jewellers chase premiums up as bullion tumbles

Wed Apr 30, 2008 12:03pm IST
 
Email | Print | | Single Page
[-] Text [+]

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.   Continued...

Construction workers work at a site as the sun sets in Chandigarh in this December 2006 file photo. REUTERS/Ajay Verma
Economy seen growing at 7.2 pct in FY10 - govt

The forecast reinforces the possibility that the government may start to unwind its fiscal stimulus in the budget.  Full Article 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives
Greece's Finance Minister Papaconstantinou addresses reporters during a news conference in Athens, January 20, 2010.
Eurozone agreed in principle to aid Greece

Euro zone countries have decided in principle to help debt-stricken Greece, a senior German ruling coalition source said.  Full Article 

FROM THE MARKETS

After the Bell
After the Bell

Reuters Money's Kshitij Anand updates you on the movers and shakers of the Indian stock market.  Blog 

SHOWCASE

"Claw Back" Pay
"Claw Back" Pay

Banks and regulators hope that threats to "claw back" pay if trades later blow up will rein in risk taking on Wall Street.  Full Article 

 
James Saft
Blaming Asperger's

COLUMN - Did Asperger's help cause the financial crisis?  Full Article 

 
Going Global
Going Global

With Volvo, Chinese eye M&A abroad to win at home.  Full Article 

 
Delivery Woes
Delivery Woes

Boeing 787 delivery schedule could slip - experts.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage