Gold hits yet another high of Rs 56,900

The precious yellow metal posted another record high of Rs 56,900 per tola (11.664 grams) in the domestic market today.

Gold had touched the highest record of Rs 56,800 per tola on Sunday due to the weakening rupee and rising international prices and had cooled down, but it has started looking up again.

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 US dollars and now with the escalated jobless rate in the US, gold is expected to go bull once again.

The international bullion market saw the price of gold rallying up on the cue of weak employment numbers in the US.

Last month, gold was feared to have entered a bearish run as the weakening euro had driven investors to US 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 is hovering around Rs 90 since last week pushed the prices up alongwith the gold also started looking up in the international commodities markets.