Sunday, June 3, 2012

Gold hits another historic high of Rs 56,800

The precious yellow metal has reached another height in the domestic market due to the weakening rupee and rising international prices. Gold price was fixed at Rs 56,800 per tola (11.664 grams) today –– Rs 1,600 higher than yesterday's price.
The international bullion market saw the price of gold rallying up on the cue of weak employment numbers in the US. On Friday, the discouraging US employment result shifted the focus of the investors from the US dollar to a more dependent safe haven gold.
Last month, gold was feared to have entered a bearish run as the weakening euro had driven investors to dollars instead of gold. Now, since the US economy also seems to be in troubled waters along with the Eurozone, gold has reclaimed its throne.
The strong dollar against the Nepali currency has also contributed in pushing the price of gold to its current high. The exchange rate for the dollar being around Rs 90 pushed the prices up despite gold being traded approximately at $1650 per ounce in the international commodities markets.
Gold had reached its earlier record of Rs 56,000 on May 4 after the government hiked the customs duty. The future of Greece staying in the euro along with the questionable Spanish solvency situation had already propelled the flight of investors to dollars and now with the escalated jobless rate in USA, gold is expected to go bull once again.

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