"Buying has dried-up because prices have moved higher again," said Mayank Khemka, managing director with Khemka Group of companies.On the other hand, somewhat higher prices have not elicited much selling from consumers.
As for Asian demand, it also dwindled as prices moved up - but that fade hasn't changed opinions about gold's long-term bull market. Again, buyers are waiting for dips.
"Inflation will not cool down very quickly because of wage increase in China. People have money in their pocket, and they don't want to keep it in the bank as interest rates are low," said a second Hong Kong-based dealer.Premiums for 1 kg bars in Hong Kong were steady, ranging from $1.20 to $1.70/oz.
"We saw buying when gold dipped below $1,500 from China, India and Indonesia, but not much scrap selling as people are still bullish on gold."