Print Edition - 2014-12-03 | MONEY
Gold leaps forward to Rs 51,500 per tola
Dec 2, 2014-
Gold posted this year’s biggest single-day gain of Rs 1,700 on Tuesday, hitting a high of Rs 51,500 per tola. The precious metal was traded at Rs 49,800 on Monday after losing Rs 665 per tola from the previous day. Similarly, silver prices jumped 6 percent to Rs 705 per tola.
Bullion traders attributed the price rise to a surge in demand due to the marriage season and an upswing in the international market.
“Gold rebounded overnight in the global market after a drop on Monday as voters in Switzerland rejected the Swiss Bank’s proposal to boost its gold reserves,” said Mani Ratna Shakya, president of the Federation of Nepal Gold and Silver Dealers Associations (Fenegosida).
Gold surged $52 to settle at $1,203 per ounce in the world market on Tuesday after falling to $1,151 per ounce on Monday from $1,167 per ounce a day earlier.
Tej Ratna Shakya, owner of Tejmin Jewellery, said that increasing domestic demand from jewellers due to the ongoing marriage season also contributed to the price rise.
“As marriage shoppers started thronging jewellery shops to make bridal jewellery, there has been a slight increase in demand,” said Shakya. “Consumers who were waiting for gold prices to fall further are now coming to us.”
The country consumes 20-25 kg of gold daily during normal times while demand surges to 30-40 kg daily during the festive and marriage seasons, according to bullion traders. The government allows 20 kg of gold to be imported daily.
Gold prices had been hovering under Rs 50,000 from the beginning of November. The yellow metal gained Rs 1,500 per tola in a single day to reach Rs 50,500 per tola on November 9 due to the Ukraine crisis as investors turned to gold as an alternative investment.
Shakya said prices were likely to fall in the coming days. “The jump in prices cannot be sustained as investors are turning to stocks due to an improvement in the US economy,” said Shakya, adding that falling crude oil prices also signal that prices could drop in the coming days.
Published: 03-12-2014 09:35