* HK premiums slip to 30 cents, Singapore steady * Rupee helps Indian buying, no signs of Chinese demand yet * Gold bars at $1 discount in Tokyo By Lewa Pardomuan SINGAPORE, Jan 6 (Reuters) - A strong rupee ignited gold buying in India, the world's largest consumer, but Chinese consumers have yet to return to the physical market despite the approaching Lunar New Year, dealers said on Wednesday. Gold bars were offered at a premium of 60 to 70 U.S. cents an ounce to the spot London prices in Singapore, barely changed from 70 to 80 cents two weeks ago, and dealers expected the value to go up due to tight supplies. "Demand from Thailand and India is good and we also have inquiries from Indonesia. But I am running out of stocks," said a physical dealer in Singapore. "I guess the levels around $1,100 still attract investors," he added. Gold has bounced from a seven-week low of $1,074.10 an ounce hit on Dec. 22 but it is well below a lifetime high of $1,226.10 struck in early December. Cash gold XAU= added $4.40 to $1,122.50 on Wednesday. Dealers noted purchases from jewellers and investors each time the gold price dropped, while a firming rupee INR= ensured steady demand from India even though the wedding season has already ended in December. Gold jewellery is the most common gift during religious events in India and forms an essential part of the dowry basket. The Bombay Bullion Association said India imported 300-350 tonnes of gold in 2009, higher than the previous estimate of a little over 200 tonnes. [ID:nSGE6030GI] "A weak U.S. dollar versus the U.S. currency makes gold price cheaper. So there's some buying," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong. "I can say sentiment is slightly bullish because the currency helps gold," he said. But a rebound in gold prices cut premiums in Hong Kong to between 30 and 70 cents from $1 on Dec. 22, when bullion tumbled to its weakest in nearly two months because of a recovery in the dollar. There were no signs of a pick-up in demand before the Lunar New Year in mid-February, when most Chinese return home for the holidays and demand for jewellery usually increases. "I think if the price drops back to below $1,090 we will see some physical demand, but of course the price is coming up right now," said a dealer in Hong Kong. "We are quoting gold bars at premiums of 40 cents." China will overtake India as the world's largest gold consumer in 2009, with total demand forecast at 432 tonnes as wealthy investors defy record bullion prices, metals consultancy GFMS said. [ID:nSP359337] In Tokyo, gold bars remained at a discount of 50 cents to $1 an ounce as investors shifted their attention to firming stock markets. [MKTS/GLOB] (Editing by Clarence Fernandez)

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