(Reuters) - Gold\'s surge to another record failed to curb demand from India, where good monsoon rains raised hopes of better income for farmers in the world\'s top consumer, dealers said on Monday.
In other parts of Asia, Indonesian jewellers cashed in on high prices, while Thai consumers chased gold on dips, keeping premiums steady at 50 to 80 cents to the spot London prices in Singapore. .
Gold powered to a lifetime high at $1,300 on dollar weakness and lingering worries over the health of the global economy. Bullion has gained around 19 percent this year.
Demand for gold in India hinges on a good monsoon, which boosts agriculture output and incomes for farmers, who account for 65 percent of the country\'s gold demand. A strong rupee also helps consumers defy high gold prices during the festive season.
\"There is buying even today despite gold touching $1,300 as the rupee is in a supportive mode,\" said Pinakin Vyas, assistant vice-president with IndusInd Bank. \"The buying momentum would continue on upcoming festivals after good monsoon rains and with the economy looking well.\"
India\'s June-September monsoon, which last year delivered the weakest rainfall in 37 years, began on a shaky note this year, but gathered momentum in July and has been in surplus this month.
India\'s gold demand picks up between August and October, when consumers buy bullion for auspicious reasons to celebrate festivals, which peak with the Diwali festival of lights in November.
Weddings also take place during the season, and gold jewellery forms an essential part of the dowry basket and Indian parents give it to their daughters at weddings for security.
Premiums were steady between 70 cents and $1.4 an ounce in India.
The rupee strengthened past 45 a dollar, its highest in four-and-half months, boosted by sustained foreign fund buying of local shares and aided by broad losses in the U.S. currency.
\"There\'s good buying from India all the way to $1,300. It seems that good rains do help demand there,\" said a dealer in Singapore, who sells gold bars to India.
\"There\'s light selling out of Indonesia, while Thailand remains a mixed market, with both physical demand and gold export,\" he added.
Premiums were also steady between 70 cents to $1 an ounce over spot London prices in Hong Kong, where there was a lack of selling from jewellers and investors despite record prices.
\"There\'s not much selling because the economy is not really stable. People don\'t want to liquidate their gold holdings,\" said a dealer in Hong Kong. \"Premiums are more less the same. Selling is limited.\"
Delegates at the London Bullion Market Association annual conference forecast an average gold price of $1,406 an ounce by September next year, topping current record highs, according to a snap poll.
News From: http://www.7StarNews.com
Monday, September 27, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment