SINGAPORE — Despite gold prices hitting a five-year low yesterday (July 20), jewellers in Singapore are not expecting a surge in customers, partially because this and next month are traditionally a slow season for Chinese and Tamil customers.

Fewer celebrations happen in July and August because they are considered inauspicious timings — the Hungry Ghost Festival for the Chinese and Aadi Masam for Tamils.

President of the Singapore Jewellers Association Charles Ho added that prices in Singapore only fell by about a dollar per gram because of the strength of the US dollar, which gold is denominated against. Gold prices fell from US$1,132 (S$1,548) an ounce to US$1,089 yesterday morning but rebounded slightly later in the day.

Several jewellers interviewed said the past long weekend saw a slight uptick in business but they are not holding their breaths for any significant boost to sales.

“I don’t think the falling gold prices will help the (bad) season,” said Mr Oh Keng Seng, 50, who added that his customers in Little India often buy gold to celebrate marriages.

Another goldsmith said that while the fall in gold prices may not lure new customers, it might convince those who are already shopping for gold pieces.

“Someone who has been wanting to buy (gold) for two months will see the low price and buy now,” said Mr Jason Teng, 37.

Another retailer, Mr William Loh, 55, added: “Of course people will come when prices are cheap.” Sales at his shop jumped by about 20 per cent over the recent Hari Raya long weekend.

Mr Ho said the tumbling gold prices would have attracted the attention of businesses more. “If businesses want to buy, now would be the time,” he said.

They might choose to cash in on the low prices and buy more now rather than waiting for the price to drop further.