Far East Gold - Moribund market seen continuing .
Mishi Saran
HONG KONG 1996-08-30
Far East gold traders thumped foreheads in frustration at the market 's foot-dragging this week and forecast on Friday that next week would not be much better .
The Southeast Asian gold market was more or less a photo-fit picture of the previous week 's position with activity slow and bullion prices trapped in a well-worn range awaiting a seasonal upturn in demand and prices into the fourth quarter .
Singapore premiums for Australian kilo bars were quoted unchanged at between 25-45 cents an ounce over spot loco London prices , with South Korean and Indonesian-origin premiums also steady at 10-20 cents an ounce .
Singapore dealers said they were concerned that there had been a marked revival in offers to sell gold by South Korean traders , following the distress sales of recent months after the Seoul government 's crackdown on bullion arbitrage trade .
" I was shocked to see these offers coming in again , though there 's been no indication of price or volume .
I dread to think what will happen to the premiums if the Koreans start selling in force , " one dealer said .
Continued dishoarding of kilo-bars by Indonesian sources ahead of next year 's presidential election has also kept a lid on premiums .
Gold closed down at $ 387.00 / $ 387.50 an ounce in Hong Kong on Friday , versus New York 's $ 387.60 / $ 388 finish on Thursday .
Dealers said the precious metal eased on a report that the International Monetary Fund might sell some of its gold to reduce the debts of the poorest developing countries .
Easier silver prices mid-week helped keep spot gold locked in a $ 386 - $ 389 an ounce range , dealers said , but they remained optimistic that the usual seasonal pick-up in jewellery fabrication demand would see gold at $ 395 by end-October .
" I still think we 'll see gold at $ 395 by the end of October , in a retracement of the $ 418 - $ 380 move we saw at the start of the year , " one said .
Silver , basis the September contract on New York 's Comex market , was expected to find support at between $ 5.12 - $ 5.15 an ounce and meet resistance from $ 5.25 - $ 5.30 , they added .
September silver closed up $ 0.004 in New York on Thursday at $ 5.255 an ounce .