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. Continued...
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India. Full Coverage
An icon bows to changing times
With his Playboy Enterprises in talks to be sold for about $300 million, the 83 year-old Hugh Hefner will be giving up control over the iconic adult entertainment empire he founded that was instrumental in shaping society's opinions on nudity, sex and free speech. Full Article





India
US
UK









