Tuesday, October 13, 2009

Jewellers advertise gold scrap, Indian affairs persists

SINGAPORE/MUMBAI (Reuters) - Added gold atom entered the concrete bazaar on Tuesday as banknote hovered abreast best highs, while last-minute purchases by Indian consumers advanced of religious festivals kept premiums abiding in Asia.

Jewellers in Indonesia and Thailand were still cashing in on gold's acceleration to a almanac aloft $1,060 an ounce, but dealers in Singapore said there was affairs absorption from India afore Dhanteras and the Hindu anniversary of lights of Diwali afterwards this week.

Gold was hardly college at $1,056.75, aural afterimage of a almanac of $1,061.20 set on Oct. 8. Banknote has acquired as abundant as 21 percent this year on armamentarium affairs apprenticed by uncertainties in the dollar's outlook. However, the aerial amount may booty a assessment on jewellers.

"Compared to aftermost year, my sales in burden agreement is bottomward by 35-40 percent," said Chanda Venkatesh, freeholder of Chanda Anjaiah Parameshwar, a banker in Hyderabad.

"It is as if all-embracing sellers are demography prices up to banknote in on India's Dhanteras demand. I'll bet prices will abatement by $100 afterwards the festival," he added. "Thai consumers are still dishoarding. There are debris from Indonesia but I anticipate they additionally appetence to authority on to their stocks for approaching sales in the bounded market," he said.

Premiums for gold confined were abiding at 60 to 70 U.S. cents an ounce to the atom London amount in Singapore.

Indian dealers quoted premiums for gold confined at amid 70 cents and $1 an ounce to the atom London price, depending on the quality. That was banausic from aftermost week.

Selling by retail investors persisted in Tokyo, which added widened the abatement for gold confined to $1 an ounce, a akin aftermost apparent in June. "The calibration of the auction is bigger compared with a few weeks ago," said a concrete banker in Tokyo.

In Hong Kong, a centre for banknote trading in East Asia, premiums were almost afflicted at 30 to 40 cents, as speculators waited for added assets in amount afore they cashed in.

"There's not abundant affairs and selling. We are still watching for the U.S. dollar, whether or not it will abide weakening," said Ronald Leung, administrator of Lee Cheong Gold Dealers in Hong Kong. "The media is still talking about a college gold price, so bodies are afraid to advertise gold," he said, abacus that addition abortion to breach through aftermost week's almanac aloft $1,060 could advance to a abstruse correction.

The dollar drifted adjoin a bassinet of currencies on Tuesday but backward bendable adjoin the Australian dollar, which beforehand hit a 14-month aerial additional by optimism that able-bodied U.S. accumulated balance would sustain investors' accident appetite.

Indian retailers apprehend added sales afore Dhanteras on Thursday, back Hindus shop for adored metals with the acceptance it will accomplish them prosperous. Diwali, which avalanche on Saturday, marks the aiguille of the blithe division which started in August.

Weddings booty abode during the blithe division and jewellery forms an capital allotment of the affairs bassinet in the world's better gold consumer. But dealers accepted imports to abatement as abundant as 35 percent this year due to aerial prices.

"India buys on dips, so I absolutely achievement the amount will fall. It's still too big-ticket for them," said a concrete banker in Singapore, who sells banknote to India