Gold price continues to soar in domestic market

Gold price continues to soar in domestic market : The price of gold continued to hit new records as it was traded at a new high of Rs. 40, 400 per tola in the domestic market on Tuesday, this week.The previous highest record of the precious metal was Rs. 40, 250 per tola on Sunday, this week.

Though the price of the precious metal declined by Rs. 50 per tola to stand at Rs. 40, 200 per tola on Monday, but on Tuesday it soared up by Rs. 200 compared to Monday to set the new record. According to Nepal Gold and Silver Dealers Association (NGSDA), the continued increment in the price of the gold in the international market has caused hike in the price of the yellow metal in the domestic bullion.

The price of the precious metal in the international market was US$ 1,421.5 per ounce on Tuesday while it was US$ 1,414 per ounce on Sunday. The deflation of dollar, hike in the price of the petroleum products in the international market and shortage of gold has also caused increment in the price of the precious metal in the domestic market. nepalnews.com

EURO ZONE CONCERNS LINGER

Gold is also supported by lingering concerns that the euro zone debt crisis could spread to Spain and Portugal. “The underlying issues haven’t really been resolved and there’s a general view that one way of resolving them is for the ECB to have a more accommodating monetary policy which is gold supportive,” said Mitsubishi analyst Matthew Turner.

Gold does well in a low interest environment, as this cuts the opportunity cost of holding non-interest bearing assets. Respected precious metals consultancy GFMS forecast silver would average around $30 an ounce in 2011, peaking at $35, while gold would peak at some $1,600-1,650 an ounce, and average $1,400.

Earlier this week, Goldman Sachs said gold will climb to $1,690 an ounce in the next 12 months as the resumption of quantitative easing will keep U.S. real interest rates low. Platinum (PL-FT) rose 0.8 per cent to $1,721.49, and palladium (PA-FT) gained 0.7 per cent to $764.47, off a 9-year high of $776.22. For the latest updates PRESS CTR + D or visit Stock Market news Today

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