Gold rising, silver follows suit

Kathmandu, February 1:

The weak Nepali rupee and volatile international market pushed gold today to yet another high of Rs 27,100 per tola (11.664 gram). Silver also followed the precious yellow metal, posting Rs 375 per tola.

However, in the international market, gold was at $927.85 per ounce today. “Although it is not as high as last October — when gold was at $1000 per ounce in the international markets — due to the weak Nepali rupee, it was traded at Rs 23,235 per 10 gram in the domestic market today,” said Nepal Gold and Silver Dealers’ Association (NEGOSIDA) president Tej Ratna Shakya.

When the international price of gold was $1000 last October, Nepali rupee was at Rs 62 per dollar. However, at present the rupee is above Rs 78 per dollar, pushing the gold price up, even if its only $927 per ounce.

“The transaction of gold was almost nil today in the domestic market,” Shakya said adding that the US recession and its impact on Wall Street has made people search for a safe haven in gold. “Since the gold is a safe deposit against recession the price in the international market is expected to go higher, pushing the domestic market to another high,” Shakya added.

In a week, gold gained over Rs 1400 per 10 gram in the domestic market.