Higher gold prices trigger selling; summer demand tepid

[epicresearch]

Selling in Asia's physical gold market could pick up as prices advance towards USD 1,580 an ounce, but trading is likely to remain dull as long as there is no clear direction for prices during the summer lull.

Spot gold dropped to below USD 1,567 in the previous session, and prompted some purchases, though the buying did not last long, dealers said.

"People are buying and selling when prices move ten or twenty dollars - they buy at USD 1,560-USD 1,570 level and sell to take profit at USD 1,580," said a Singapore-based dealer.

"As we remain range-bound, people are not going to be very hungry for physical materials." Gold prices have been trading in a USD 100 range above USD 1,530 for about two months. It stood at USD 1,579.16 at 0701 GMT.

In Hong Kong, premiums were quoted in the range of USD 1 to USD 1.50 an ounce above London prices, dealers said. In Singapore, premiums were little changed from a week earlier, at 80 cents to USD 1.