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Gold price touches all time high
KATHMANDU, JAN 01 - After a brief stability, the gold price has started skyrocketing again in the domestic market. On Wednesday, the price went on to touch Rs 11,360 per tola (11.66 grams) creating a new historic record.
The gold price today increased by Rs 30 to touch Rs 9740 per ten grams, as Nepal Gold-Silver Dealers Association informed The Kathmandu Post. On Tuesday, gold price was fixed at Rs 9,710 per 10 gram, which is higher by Rs 75 as compared to Monday’s price.
The price rise has hit the market at a time when the demand of the precious metal is at the lowest, said Tej Ratna Shakya, President of the association. According to him, the daily demand of the metal has slid by 50 percent with closing of the marriage season and due to the price factor.
“With the price rise, in fact, the process of sales has reversed, as the pressure of selling out older stock has intensified,” he added. While gold dealers outside the valley like in Hetauda have already declined to procure the stock from customers, similar pressure is mounting in the Valley.
“The situation has turned tough and we do not know how to cope up with the pressure,” said another capital-based dealer. Worse is that such pressure is feared to build up further, especially as the international trend of the price of gold is expected to rise in the days to come.
In the international market, gold prices touched a new near-eight year high on Wednesday. In London, the price of an ounce of gold stood at US $417.25 in the morning fixing, up from US $416.25 on Tuesday, according to agencies.
Experts attribute the latest gold price rally to sliding confidence in US dollar with which it shares negative correlation. The US dollar has been sliding since the resumption of trading after Christmas. On Monday, it had slid to a new all-time low against the euro and an 11-year low against the sterling pound.
“The increased demand for gold during the New Year season too has contributed to the price rise,” added people knowledgeable to the matter.
Moreover, the continued fear over terrorism has been triggering instability in the international market, which has been switching the international investors to gold against dollar.Posted on: 2004-01-01 02:58
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