Gold hits six-month high of Rs 57,500
Kathmandu-Nepal (Mar 17) Gold prices have taken off again after dropping constantly for the past few months due to the crisis in Ukraine which drove investors to the yellow metal. The rise in global prices has led to a surge in domestic prices, with the precious metal jumping Rs 1,500 per tola in one week.
From Rs 56,000 per tola on March 10, hallmark gold hit a six-month high of Rs 57,500 on Sunday. The price of the yellow metal had reached Rs 58,000 on Sept 10, 2013 before starting to go downhill. Gold recorded a six-month low of Rs 51,600 per tola on Jan 1, according to the Nepal Gold and Silver Dealers Association (Fenegosida).
Fenegosida President Mani Ratna Shakya said global trends affected gold prices as investors switched to gold from stocks after the Ukrainian crisis emerged.
After opposition groups friendly to the West captured power in Ukraine by ousting its Russia-friendly president, Russia and the West have been engaged in a standoff that has affected global share markets. People usually switch to gold when they see a risk in stocks. The increased investment in the gold market has triggered a rise in the price of the yellow metal. Shakya added that worries over an economic slowdown in China also led to a rise in demand for gold. Manufacturing activities, exports and inflation all have slowed in China which has witnessed the slowest growth in the last 14 years.
Gold traded at US$ 1,385 per ounce in the international market on Sunday. Media reports said that gold recorded a six-month high since Sept 9 when it had reached US$ 1,387.90 per ounce.
Tej Ratna Shakya, former president of Fenegosida, said that gold prices would continue to rise in the international market. “Demand is increasing in the international market as experts have urged people to invest in gold saying that the year 2014 is good for investment,” he said.
Gold started soaring since the start of the year. Despite the rise in gold prices, it is not expected to create any upheavals in the market as it is the off season and no auspicious events are on the calendar in the immediate future when demand goes up.
Source: ekantipur
