Print Edition - 2014-11-10 | MONEY
Gold up Rs 1,500 overnight, hits Rs 50,500 per tola
Nov 9, 2014-
Gold price posted this year’s biggest single-day gain of Rs 1,500 per tola on Sunday to reach Rs 50,500. The metal was traded at Rs 49,000 on Saturday. Silver price also jumped Rs 20 to Rs 685 per tola.
Bullion traders attributed the price rise to the strengthening of the US dollar against Nepali rupee and a surge in international market prices.
“In the international market, the price rose 3.65 percent, which reflected in the domestic price,” said Mani Ratna Shakya, president of Federation of Nepal Gold and Silver Dealers Association (Fenegosida). “Amid Ukraine crisis, investors are turning to gold as alternative investment.”
Gold price edged up to $1,138 from $1,180 an ounce on Saturday. Investors usually switch to gold when they see risks in stocks. And, the increased demand has triggered a price rise.
Shakya said the Nepali rupee’s depreciation against the dollar, which makes imports costlier, also played a role. On Sunday, the exchange rate was at Rs 98.89 per dollar.
Gold price had slid Rs 1,000 last week. It hit a 19-month of Rs 49,000 last Thursday. However, traders predict the price might go up further in the days to come if the Ukraine crisis escalates.
“After dropping to a 19-month low last week, sales remained very low as customers were in wait-and-see mode,” said Tej Ratna Shakya, special member of Fenegosida. “But we hope the prices will increase further and customers will come,” he said, adding Nepali customers usually start buying gold when the price starts to rise from a massive fall.
According to Fenegosida, the daily gold demand stands at 20 per kg in normal days and 30-40 kg in the festive season. Nepal Rastra Bank allows commercial banks to import 15 kg gold per day.
Published: 10-11-2014 09:07