Print Edition - 2014-06-21 | MONEY
Gold price up Rs 1,400 to Rs 54,000 a tola
Jun 20, 2014-
Gold price posted this year’s biggest single-day gain of Rs 1,400 pet tola on Friday to hit one-and-a-half month high of Rs 54,000.
The price of the precious yellow metal jumped in line with the international prices, according to the Federation of Nepal Silver and Gold Dealer’s Association (Fenegosida). Silver price was also up Rs 52 to hit Rs 830 per tola.
“Gold price in the international market rose 3.3 percent, the biggest one-day gain since September 2013,” Fenegosida President Maniratna Shakya said. “Investors worldwide are buying gold as an alternative investment after worsening Iraq crisis.” Gold reached $1322.12 per ounce in Singapore on Friday.
Shakya said depreciating Nepali currency against the dollar, which makes gold imports costlier, also affected the price. The exchange rate on Friday was at Rs 96.60 per US dollar.
On June 5, gold price was at Rs 51,000 per tola on June 5. Over the last week, gold has become dearer by Rs 2,000 per tola. Last Sunday, the metal was traded at Rs 52,000 per tola.
Despite the rise in the price, traders have reported healthy sales. “Sales, especially of jewellery, have risen 10-15 percent in the recent days,” said Bikash Jodhani, proprietor of Jai Mata Di Gold Palace at Newroad. “Sales of jewellery have not decreased as gold is still not expensive compared to the price in the same period a year ago.”
Traders said the price would rise further given the tension in Iraq and Ukraine. The country consumes 20-25kg gold a day during normal days, while the demand surges to 30-40kg a day during the festive season, according to bullion traders. The government allows import of 20kg gold per day.
Published: 21-06-2014 09:17