Sunday, 4 September 2011
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* Spot gold pulls back from record high; buying robust
* India yet to make bulk purchase for wedding season
By Rujun Shen
SINGAPORE, Aug 24 (Reuters) - Gold buyers rushed into Asia's
physical market on Wednesday, after prices retreated from the
record high hit in the previous session, as investors maintained
interest in bullion due to a shaky global growth outlook.
Spot gold tumbled 3.6 percent on Tuesday after
striking a record above $1,911 an ounce. Prices rebounded as
buyers picked bargains, trading up 0.7 percent to $1,841.79 by
0701 GMT.
Dealers saw a flood of orders after Asia opened business on
Wednesday.
"Everyone is hunting for physical gold now," said a
Singapore-based bullion dealer, adding that physical gold buying
continued even when prices hit records in the past few sessions.
Premium on gold bars in Singapore steadied at 40 to 80 cents
an ounce above spot prices, she said.
Some analysts have been warning about an overdue correction
in gold prices, but the pessimistic macro environment has
encouraged more investors to look into gold as an alternative
investment.
"People don't trust banks, stocks or bonds," said Dick Poon,
manager of precious metals at Heraeus in Hong Kong. "They have
been buying physical gold at all-time high prices, just to
diversify their portfolio to include gold."
Physical silver purchase was also active, he added.
Gold premium in Hong Kong held within a range of 70 cents to
$1.20 an ounce, dealers said.
Asia's summer lull in the physical gold market will come to
an end in the next few weeks, as India embraces its festival and
wedding season starting late September and China gears towards a
week-long holiday in early October that benefits gold retail
business.
WEEK AHEAD
Investors are closely watching U.S. Federal Reserve Chairman
Ben Bernanke's speech on Friday when central bankers meet for
clues of further stimulus for the faltering U.S. economy.
More quantitative easing would further boost gold's appeal
as inflation concerns rose, especially as the Fed has promised
to keep interest rates low for the next two years.
(Editing by Ramthan Hussain)
Category:
Gold Saving / Investment
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