Tuesday, September 4, 2012

Gold roars to a new high; nears Rs 60,000 per tola

KATHMANDU, Sep 3, 2012

After a brief reprieve last week, gold continued its record-setting spree climbing to a new high of Rs 59,900 per tola (11.664 grams) in the domestic market on Sunday - the first trading day of the week.

Nepal Gold and Silver Dealers´ Association (Negosida), which fixes gold and silver prices in the domestic market, increased gold price by Rs 900 per tola on Sunday compared to Friday when the yellow metal was traded at Rs 59,000 per tola.

“International bullion prices determines gold and silver prices in the domestic market. We had to raise price of gold after the yellow market rallied in the international market on Sunday,” said Diyesh Ratna Shakya, secretary of Negosida. “Glittering gold is turning shoppers away ahead of the festive season.”

Gold, which was priced at US $1,655 per troy ounce during early trading on Friday, gained $36 per troy in the international bullion market on Saturday.
According to Shrestha, gold price is increasing in international market as investors are looking to safe haven due to slowing global stock market.

Traders said demand for gold in the capital has dropped to around 10 kg a day, almost half of average daily demand recorded a month ago.

“It would be difficult for bullion traders to sustain business if gold sales did not pick up during upcoming festive season of Teej, Dashain, Tihar and Chhath,” Pramod Ratna Shakya, proprietor of New Road-based Tejmin Jewelers, said.

Price of silver has also increased by Rs 40 per tola. Silver was traded at Rs 11,145 per tola on Sunday.

Source: Republica

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