Singapore and Indian Brokers Sold Out; Shanghai Gold Volumes Surge 55%
GoldCore.com
GoldSeek.com
Wednesday, 29 May 2013
The paper gold market remains volatile and is likely to get more volatile but this is not deterring physical buyers and premiums remain strong in most markets.
Premiums in India and Hong Kong have fallen from the very high premiums of recent days but Singapore, Shanghai, Dubai, Turkey and western markets continue to see high premiums.
Overnight the volume for the Shanghai Gold Exchange’s cash contract surged 55% to 15,641 kilograms from a two-week low of 10,094 kilograms on May 27.
The Shanghai Futures Exchange announced yesterday that they will begin after-hours trading for gold and silver futures within one or two months.
In Singapore, gold coins and bars are being sold at high premiums compared to the spot price as there is not enough supply in the market to meet the strong demand.
Reuters quoted one broker who said that most of the bullion dealers in Singapore were sold out of bullion and that “everybody is buying and no one is selling.”
In India, certain states have either seen coin stocks fall to very low levels and others have actually run out of gold coins.
The drop in gold prices in April led to a surge in bargain hunting in India and globally which is continuing with prices below $1,400/oz.
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