Tuesday, June 19, 2012

Gold posts another record of Rs 57,702 per tola

The yellow metal reached another peak in the domestic market as the continuing European debt crisis has revved up the appeal of gold as a safe haven.
Gold was priced at Rs 57,702 per tola (11.664 grams) in the domestic market today. The international bullion market saw gold reaching $1630 as the initial flush of the results of the Greek elections could not sustain for long. Yesterday, gold was priced at Rs 57,100 per tola.
Gold price had hit Rs 57,200 per tola – the previous record – last Thursday. Though the results of the Greek elections have removed any threat of Greece exiting the European Union or forgoing euro as a currency, the troubles in the Eurozone are still high. Gold has once again reclaimed its safe-haven appeal on the backdrop of global debt worries.
The threat of a probable default by major European nations on their sovereign debt along with fear of inflation brought about by increased money supply in the form of Quantitative Easing by the US government to tackle its slowdown have inspired international investors to invest in gold leading to its price appreciation.
The appreciation of the dollar against the Nepali rupee has also caused the price of gold to surge here even though gold is yet to hit $1,900 per troy ounce which it had reached in August 2011.

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