Sunday, June 16, 2019

Gold hits four-month high

Gold prices hit a four-month high of Rs 63,000 per tola (11.664 gram) in the local market today.
The precious yellow metal has hit a record high of Rs 63,000 per tola earlier on only two occasions – on March 8 this year and on August 28, 2013 – according to the traders, who claim that the price is likely to rise further and make a new record.
Federation of Nepal Gold and Silver Dealers Association (Fenegosida) past president Tej Ratna Shakya said that there is possibility of price rising further, if the US-China trade war does not settle down any time soon. “The US-China trade war has lifted gold prices globally and it looks to increase further if the trade war escalates,” he said, adding that it could turn into a currency war, further boosting investor demand for gold. “The trade war will send investors towards the safe haven of gold.”
Likewise, the budget – that was announced on May 29 – had hiked the customs duty on gold by Rs 800 per 10 grams to make the price at par with the Indian market in order to stop smuggling. “The hike in customs duty by the government has also made gold prices dearer,” he said, adding that domestic prices are, though, mainly fixed on the basis of prices in the international market. “The precious yellow metal was at Rs 62,300 per tola on Thursday, and it increased by Rs 700 per tola in a single day to close at Rs 63,000 per tola on Friday also.”
The rise in the price has brought the demand of the gold in the local market down as the trading dropped to 25 kg from up to 35 kg per day.
“The gold demand dropped sharply when the price crossed Rs 60,000 per tola,” Shakya said, adding that gold demand currently has been reduced by 44 per cent during the peak season – the mid-June to mid-July – that is considered to be prime season for gold trading due to weddings.

No comments: