Taking cue from the international price, the gold witnessed the rise in price in the domestic market, though the market didnot see any trading during the whole week due to UCPNMaoist called general strike since Sunday. Tej Ratna Shakya, president Nepal Gold and Silver Traders Association (Negosida) said that the whole week did not see a single trading of gold, though the market has a demand of 10 kg of gold per day at present. However, the precious metal witnessed a price rise of Rs 455 per 10 gram to close at Rs 28,415 this Thursday. The price was not fixed on Friday.
Gold that was closed at Rs 27, 940 last Friday opened at Rs 28,100 on Sunday. On Monday it went up to Rs 28,102 and continued rising
on Tuesday to Rs 28,175 per 10 gram. The price cooled a little on Wednesday to Rs 28,160 but the international price again pushed the price up to Rs 28,415 per 10 gram on Thursday. At present the bankers provide tentative price of gold to traders within 10:30 am for local market pricing, unlike earlier practice of price fixing by the Negosida it self.
After settling at a fivemonth high, gold sharply extended gains above $1,200 an ounce — In the international market — as a perceived safe haven when US equities cratered on European sovereign debt fears and worries about regulatory changes. Most actively traded gold, for June delivery, hit $1,211.90 in electronic activity on the Comex division of the New York Mercantile Exchange after the Dow Jones Industrial Average lost nearly 1,000 points. It was the metal’s strongest price since early December.
The intensified fear boosted the flight-to-safety buying in gold that had already helped the metal sharply higher during the day. The June gold contract settled its regular floor session $22.30, or 1.9 per cent higher at $1,197.30 an ounce. The higher gold price is notable because it comes despite the continued rally in the US dollar.
Normally, a higher buck pressures the dollar-denominated metal by making it more expensive for buyers using other currencies, hurting demand.
In addition to moving into the dollar as a refuge, participants are shifting assets into dollar-denominated gold and Treasurys. The fact that the greenback and gold are up at the same time indicates investors are moving into both in their traditional roles as safe havens.
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