Gold bar premiums hit a four month high in Japan after scrap gold supplies dried while industrial and investor demand climbed up.
TOKYO(BullionStreet): Gold bar premiums hit a four month high in Japan after scrap gold supplies dried while industrial and investor demand climbed up.
Premiums of gold bars here rose to as much as $1.50 an ounce above London prices on Friday, the highest level since last March, as investors turned from sellers to buyers during a recent price downturn, dealers said.
Analysts said investors are not selling as gold prices have softened recently on concerns about the euro zone economy.
They added that since the beginning of May, gold liquidation by Japan's general public has shrunk, while industrial demand and investment buying from the public have become relatively strong.
Spot gold has wiped out gains from earlier this year, and was on course for a weekly loss of 6.6 per cent, as fears of a messy Greek exit from the euro zone gripped investors and triggered a sell-off in risky assets, claiming gold as a victim.