Gold hits 4-month high of Rs 53,300 per tola

- POST REPORT, Kathmandu
Gold hits 4-month high of Rs 53,300 per tola

Jan 16, 2015-

Gold jumped Rs 1,100 per tola to hit a four-month high of Rs 53,300 per tola in the domestic market on Friday. The price of silver also rose Rs 10 per tola to Rs 720. Bullion traders have attributed the upward swing to international market trends.

According to the Federation of Nepal Gold and Silver Dealers Association (Fenegosida), the yellow metal had reached Rs 53,400 per tola on September 2, 2014.

Global price fluctuations are usually immediately reflected in local prices. According to Reuters, the precious metal rose in the international market as investors sought safety from market volatility after Switzerland unexpectedly scrapped a cap on the franc.

Spot gold was firm at $1,259.80 an ounce on Friday, after jumping to $1,266.11 on Thursday, a level last reached in September. Thursday’s volatility in global markets saw investors channelling money towards gold, often seen as an alternative investment to riskier assets.

The Swiss National Bank shocked financial markets on Thursday by scrapping a three-year-old cap on the franc, sending the currency soaring against the euro and stocks plunging on fears for the export-reliant Swiss economy.

Fenegosida President Mani Ratna Shakya said that besides the removal of the Swiss currency cap, a weakening dollar and a decline in oil prices also contributed to the rise in bullion prices.

On Friday, Nepal Rastra Bank fixed the exchange rate of the US dollar at Rs 99.29 for Saturday while recent rates had hovered over the Rs 100 level.

Meanwhile, the domestic market has been witnessing a rise in demand for gold from jewellery makers with the start of the marriage season. According to Fenegosida, the daily requirement of gold in the local market is 20 kg during normal times. Demand swells to 30-40 kg during the marriage season, it said.

Published: 17-01-2015 09:50

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