Monday, August 8, 2011

Gold price continues to look up

Unlike yesterday's domestic pressure, today the international price pushed the price of precious yellow metal to a new record high of Rs 47501.64 per tola (11.664 gram) — a hike of Rs 901.64 in a single day.
Yesterday the shortage of gold in the domestic market has propelled the gold price to Rs 46,600 per tola.In the international market, the price of gold struck a record high of above $1,700 an ounce today with dealers flocking to the safe haven metal as Asian stocks tumbled following Standard & Poor's downgrade of US debt.
Gold ended at a record high of $1,706-$1,707 an ounce in Hong Kong, well up from Friday's close of $1,655.50-$1,656.50."People are just taking their money out 1/8 of other markets 3/8, especially from the dollar and euro and investing in gold and the Japanese yen," a Tokyo-based trader said.
Asian markets were sent spinning on Monday after S&P late on Friday cut the United States' AAA rating by one notch, citing deep divisions in Washington over its long-term fiscal standing.
The turmoil has led investors to seek out less-risky gold at a time of economic uncertainty.
S&P's downgrade compounded already weak sentiment amid fears that the eurozone debt crisis will spread to other nations, while the United States has posted a series of poor data indicating an economic slowdown.It has led some analysts to warn of another global financial crisis that could even be worse than that of 2008-09.

The climbing price
April 8 — Rs 40,398.26
May 8 — Rs 41,488.
June 8 — Rs 43,098.48
July 8 — Rs 42,497.78
August 8 — Rs 47,501.
(The price of gold rupees per tola that is 11.664 gram. Source: Nepal Gold and Silver Dealers Association)

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