Tuesday, August 28, 2012

Gold, silver set new records

KATHMANDU, Aug 27, 2012

Gold continued its bull run in the domestic market, climbing to a new high of Rs 59,194 per tola (11.664 grams) on Sunday. Silver also set a new record of Rs 1,115 on the day.

Nepal Gold and Silver Dealers´ Association (Negosida) had fixed gold price at Rs 58,900 on Friday. As the association do not fix price on Saturdays, the yellow metal was traded at Rs 58,900 on Saturday as well.

According to traders, gold became expensive in the domestic market following rise in prices of the precious yellow metal in the domestic market. Gold was traded at US $1674 per troy ounce on Sunday, posting a rise of $7 per troy once compared to Saturday.

Negosida has attributed the rise in price to upward journey of gold in the international bullion market. Gold is becoming expensive as investors are turning to safe have following slackness seen in major stock market across the world, officials of Negosida said.

“Price of gold is rising continuously in the international market, making customers nervous ahead of major festivals like Teej, Dashain and Tihar when demand for the yellow metal hits peak,” Bijay Ratna Shakya, secretary of Negosida, told Republica.

Traders said gold´s march into the green territory has led to drop in demand for the yellow metal in the domestic market. They said demand has dropped to an average of 20 kg per day, almost half of the daily demand compared to last year. Gold price has increased by over Rs 10,000 per tola over the past year.

Similarly, price of silver has also hit a new high of Rs 1,115 per tola. Silver was traded at Rs 1,100 per tola on Friday.

Source: Republica

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