Gold crosses Rs 24,300

Kathmandu, March 14:

Gold price touched historic high of Rs 20,835 per 10 gram — over Rs 24,300 per tola (11.664 gram) — today, the closing day of the week, in the domestic merket.

If the current bullish trend continues, soon the price will cross Rs 25,000 per tola in the domestic market, according to the gold traders.

Due to the huge price rise in crude prices that touched the historic high of $110 per barrel yesterday, slow down of US economy, weak global stock market and further weakening of

dollar has been pushing the price of gold up in the last months.

The precious yellow metal in the local bullion market opened at Rs 20,465 per 10 gram on Sunday and surged by Rs 370 to close at Rs 20,835 on Friday.

In the international market also, Gold has hit a new milestone yesterday, rising to $1,000 an ounce for the first time. The price of gold has jumped nearly 20 per cent since the start of the year after rising nearly 32 per cent in 2007.

Lower interest rates — and the prospect of more rate cuts by Fed — bringing the dollar’s value down makes dollar-based commodities like gold cheaper for foreign buyers.

The weak currency has also made gold more attractive because the metal is a hedge against inflation, according to experts.