Gold hits Rs 35,235, silver STANDS AT Rs 1,007
With investors in the international market investing heavily in gold amid a spike in global inflation and fresh eurozone debt worries, gold and silver prices reached an all-time high in the domestic bullion market on Friday.
The yellow metal traded at Rs 35,235 per 10 gm (Rs 41,098 per tola) while silver was traded at Rs 1,007 per 10 gm (Rs 1,175 per tola) on Friday. Gold and silver rose Rs 340 per 10 gm and Rs 42.50 per 10 gm respectively over the week.
According to the Nepal Gold and Silver Dealers Association (NEGOSIDA), the price surge in the local market is a reflection of the trend witnessed in the international market.
“In recent days, demand for gold and silver in the international market has been rising constantly as investors are shifting to precious metals from other investment instruments,” said Manik Ratna Shakya, general secretary of NEGOSIDA. “Demand for silver has been growing as investors are expecting a surge in demand with the process of Japan’s recovery from the earthquake and tsunami. In recent days, industrial usage of silver has been rising constantly.”
Apart from global inflation, eurozone debt worries and the disasters in Japan, traders blamed political unrest in the Middle East and a falling US dollar for the hike in bullion prices.
On Friday, the global market registered a record high for gold of US$ 1,479.35 per ounce and silver was priced at US$ 42.42 per ounce.
Local traders are worried about a decline in demand for precious metals amid a hike in prices during the approaching wedding season in Baisakh.
Demand for gold and silver in the domestic market has gone down 50 percent, and traders fear that it will drop 20 to 25 percent even during the wedding season. “Amid a deteriorating investment environment in the country, the purchasing power of the people has been weakened by rising inflation,” said Shakya. “With the ever rising price of gold and silver, demand for these metals will ultimately plunge despite the wedding season.”
Shakya said that people would buy less or refrain from purchasing gold and silver as a result of the hiked prices.
Posted on: 2011-04-16 09:03
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