Gold Touches New High of Rs 29,860 Per Tola

Gold touched its historic high today as it was traded at Rs Rs 25,600 per 10 gram (Rs 29,860 per tola) International market pushed the domestic market up. "Traders here are assuming for yet another hike at $1040 per ounce," said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association (NEGOSIDA). Gold today was traded at a record price of $1018 per ounce from yesterday's $1010 in the international market.

According to him, due to devaluation of American dollar against euro and yen, the gold in the international market is increasing rapidly.

"The demand has also increased," Shakya said adding that there is also a fall of 60 paisa per dollar to- day in comparison to yes- terday.

US dollar was traded at Rs 77.5, whereas gold from yes- terday's Rs 25,550 per 10 gram (Rs 29,800 per tola) went up. "Gold price increased by $8 per ounce in the international market but in the domestic market it went up by only Rs 60 per 10 gram,"

Shakya said adding that gold price is looking towards Rs 30,000 per tola in the domestic market.

During the month of Bhadra due to less fluctuation in gold price there was a satisfactory trading of gold with an average of 15 kg per day, whereas in recent days only 10 kg gold is being traded per day, though it's the festival season.

Gold broke its record on February 22 with Rs 25,550 per 10 gram (Rs 29,800 per tola). on July 16, 2008 gold was traded at $1045 per ounce in the international market that was Rs 25,450 per tola due to dollar exchange rate then that was Rs 62. But dollar vis-avis nepali rupee is expensive now fueling the gold price high.