Jewellers, investors chase bullion higher

---

SINGAPORE, May 6 (Business Times): Jewellers and investors in Asia hunted for bargains Friday after bullion dropped overnight in line with a brutal correction in silver prices, helping gold regain strength and pushing premiums higher. Top buyer India was in the physical market as the wedding season gathers pace, while consumers from Thailand and Indonesia chased gold bars, with bullion prices already losing more than 5 per cent since striking a record around US$1,575 Monday. Gold bars were offered at premiums as high as 85 US cents to spot London prices in Singapore, up from 50 US cents earlier this week and also last week. Dealers noted physical buying on silver by bargain hunters in Singapore and Hong Kong. 'I guess everyone thinks we have tonnes of gold bars lying around that buyers can just grab and go, and worst of all, they are still shopping for bargains,' said a physical dealer in Singapore, who sells gold bars at a premium of 85 US cents. 'But we dare not commit for anything that will not be on the shelf for them or will arrive later than next Wednesday,' he said, referring to tight gold supplies in Singapore. Gold rose more than 1 per cent to US$1,489.26 an ounce, headed for a 5-per cent drop from a week earlier, its worst week since March 2009. Silver rose 2.5 per cent to US$35.54, snapping a five-day losing streak, but on track for a 26-per cent weekly loss, its biggest since the early 1980s. 'We're seeing buying from Indonesia, Thailand and basically from everywhere. We are quoting gold bars at 80 cents premiums,' said another physical dealer in Singapore. 'There's good buying around for gold and silver,' said the dealer, referring to demand from India.