Wednesday, February 27, 2008

Gold hits record

Gold price touched today historic high of Rs 19,720 per 10 gram — Rs 23,001 per tola — in the domestic market. The price increased by Rs 220 to Rs 19,720 per 10 gram from the yesterday's Rs 19,500.
"The price of precious yellow metal has gone up due to continuous weakening of dollar," Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association's (NEGOSIDA), said adding that the price may go up to Rs 25,000 per tola (11.664 gram).
The demand has been continuously rising in the largest gold consuming countries like India and China that has also fuelled the price hike.
Local gold trader are a worried lot as the domestic market of Nepal's size can do nothing to stop this bullish trend.
The price rise in global crude prices that crossed $102 per barrel today, fear of recession in the US, weak global stock market and further weakening of dollar pushed the price of gold up.
According to Shakya, Fed rate cut has also pushed the price up as people started heavy buying. "Due to slowdown in global share market and US market people tried to buy gold against the security of inflation," he added.
The precious yellow metal in the local bullion market opened at Rs 19,635 on Sunday and remained constant for two days. But yesterday, it plunged by Rs 135 to Rs 19,500. However, today it flared again by Rs 220 to Rs 19,720 per 10 gram setting a new record.
Similarly, silver price is also witnessing a bullish trend. It increased by Rs 11 today to Rs 375 per 10 gram from yesterday's Rs 364.
A cut in production of gold in South Africa due to power shortage
and low mining have also contributed to the price hike. It is predicted that the gold will touch $1000 per ounce.
The price of gold surged to a record high point of $964.99 per ounce today morning in London. The previous record price was $953.91 on February 21.

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