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Gold sales shine in India, Indonesia
Friday, March 23, 2007
SALES of scrap gold from Indonesia have picked up this week as jewellers cash in on bullion's rise but India, the world's main consumer, shows buying interest ahead of the busy wedding season in April.
In other parts of Asia, sales of gold bars from Japanese retail investors have slowed to a trickle as they regained confidence in the precious metal which has been battered by a sell-off in equities.
Cash gold rallied to its highest level in nearly three weeks at US$664.60 an ounce yesterday on firmer crude oil and as the dollar fell after the US Federal Reserve held interest rates steady at 5.25 per cent.
Despite sales from Southeast Asia's main buyer, Indonesia, gold bars stayed at a premium of 10 US cents an ounce to the spot London price in Singapore, a centre for bullion trading in the region
"I definitely expect more scrap from Indonesia to come in if it goes to US$670. But I don't think the sales will cut the premiums because we still see light buying from India," said a dealer in Singapore. The wedding season and the gold-buying festival of Akshaya Trithiai begin in April in India, where gold is seen as an auspicious metal and buying rises during festivals and wedding seasons.
Gold jewellery is the common gift during religious events and forms an essential part of the dowry basket. A weaker dollar also boosts gold's appeal as an alternative investment.
Reuters
In other parts of Asia, sales of gold bars from Japanese retail investors have slowed to a trickle as they regained confidence in the precious metal which has been battered by a sell-off in equities.
Cash gold rallied to its highest level in nearly three weeks at US$664.60 an ounce yesterday on firmer crude oil and as the dollar fell after the US Federal Reserve held interest rates steady at 5.25 per cent.
Despite sales from Southeast Asia's main buyer, Indonesia, gold bars stayed at a premium of 10 US cents an ounce to the spot London price in Singapore, a centre for bullion trading in the region
"I definitely expect more scrap from Indonesia to come in if it goes to US$670. But I don't think the sales will cut the premiums because we still see light buying from India," said a dealer in Singapore. The wedding season and the gold-buying festival of Akshaya Trithiai begin in April in India, where gold is seen as an auspicious metal and buying rises during festivals and wedding seasons.
Gold jewellery is the common gift during religious events and forms an essential part of the dowry basket. A weaker dollar also boosts gold's appeal as an alternative investment.
Reuters
source: Brunei Times
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