Gold up by a goodly hop

KATHMANDU: Gold became costlier by Rs 340 per 10 gram this week.

The precious yellow metal this week closed at Rs 24,005 per 10 gram from last week’s closing of Rs 23,665. The domestic market witnessed a gradual hike in the price of gold, pushed up by the international price.

“The international market has pushed up the price of gold here,” said Nepal Gold and Silver Dealers’ Association (NEGOSIDA). A strong global share market and rise in oil price have pushed the international price of gold, making it costlier here. Gold was traded at $951 per ounce in the world market last Friday and was $963 per ounce — a rise of $12 per ounce — today on Friday. Due to high international price, domestic transactions are likely to be hit.

The price rise has taken toll as during November-December 1998, around 1,050-kg of gold used to be transacted in a month — 35 kg per day — it being the wedding season. It worsened in 2007, with the transaction of gold per day hovering at around only five to 10 kg per day. This past season again, transactions picked up to around 15 kg per day sale. However, the recent increase in gold price has again started hitting transactions.

The trend of investing in gold for security had picked up in Nepal, giving a boost to the transaction of the yellow metal in the domestic market. The trend of holding gold had also increased by 10 to 20 per cent as against only five per cent last year.

The domestic market saw the highest price of gold at Rs 25,500 per tola last October since same year’s July, when it was Rs 25,450 per tola.

NEGOSIDA said that the bullish trend of gold is likely to continue.

Meanwhile, silver also followed the bullish trend as it closed at Rs 377 — Rs 10 higher than last week’s Rs 367 per 10 gram.