SINGAPORE, May 16 (Reuters) – Premiums for gold bars rallied to all-time highs in Hong Kong and Singapore on Thursday after bullion’s steepest drop since its April sell-off fuelled another round of buying, constricting supply.
Gold bars in Hong Kong fetched premiums of up to $5 an ounce over spot London prices, driven by tight supply and strong demand from China, the world’s second-largest consumer after India. Premiums stood at $3 an ounce last week.
“Honestly, we don’t have enough physical gold to supply to the Chinese. I just heard one Hong Kong party is quoting premiums at $6. This is mad,” said a dealer in Singapore.
By Lewa Pardomuan
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(image above: source India Times)