Business

Gold on gaining spree

Gold on gaining spree

By Himalayan News Service

Kathmandu, February 14:

The weak Nepali rupee against the US dollar and fluctuating international market have pushed the price of gold up to Rs 27,800 per tola (11.664 grams) on Friday — the last day of trading in the domestic market. Gold gained Rs 685 over a week from last Friday’s closing of Rs 23,150 per 10 gram.

“The precious yellow metal was traded at Rs 23,835 per 10 gram this Friday,” said Nepal Gold and Silver Dealers’ Association (NEGOSIDA).

Though the international market has not wirnessed the record price hike in the international market like last July the domestic market witnessed a whopping gain this week, hitting the transaction of the gold.

“Last July, when gold touched a historic high of $1000 per ounce in the international market, the Nepali rupee was at Rs 62 per dollar. But on Friday, the Nepali rupees was at Rs 77.80 per dollar,” said Tej Ratna Tej Ratna Shakya, president of NEGOSIDA.

“If the dollar gets strong — which it is expected to due to US president Barack Obama’s $787 stimulus plan — gold price may come down,” Shakya predicted. But the end to the bull run seems nowhere in the sight.

The escalating price hit the transaction of the precious yellow metal as the market across the country witnessed only four-five kilo gram transaction in a day.

On Sunday, gold opened at Rs 23,235 per 10 gram from last Friday’s closing of Rs 23,150 per 10 gram. The price remained constant on Monday. On Tuesday it plunged by Rs 85 per 10 gram to Rs 23,150. However on Wednesday, the price shot up to Rs 23,320 per 10 gram — Rs 27,200 per tola.

On Thursday, the domestic market observed yet another record price of gold at Rs 27,700 per tola — a hike of Rs 500 in a single day. The precious yellow metal was traded at Rs 23,750 per 10 gram on Thursday.

On Friday, the precious yellow metal broke all past records to set a new record of Rs 27,800 per tola. “Gold was traded at Rs 23,835 per 10 gram on the last day of this week,” said Shakya.

Meanwhile, silver also was on a roll. It was traded at Rs 328 per 10 gram on Sunday and Monday. On Tuesday, it was at Rs 330 per 10 gram (Rs 385 per tola). Thursday, it gained nine rupees to hop to Rs 339 per 10 gram. Silver closed at Rs 343 per 10 gram on Friday.