Gold becomes dearer

The price of gold, once again, is touching the sky. Although in the international market, it hit $944 per ounce today, a rise by $2 from yesterday, it showed a reverse trend in the domestic market and fell by Rs 100 per tola (11.664 gram) from yesterday.

It touched Rs 20,920 per 10 gram — Rs 24,400 per tola — in the domestic market today. Yesterday, it hit Rs 21,005 per per 10 gram — Rs 24,500 per tola.

However today, the price of the precious yellow metal decreased by Rs 100 to Rs 20,920 per 10 gram.

“Due to the off-season and tepid market response, we did not increase the price today,” Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers’ Association (NEGOSIDA), said adding, “Rather, the stockist decreased the price by Rs 100 per tola in the domestic market.” “The price of gold in the global market is rising as the price of crude is also touching new highs everyday,” he said, pointing to the possibility of gold hitting Rs 25,000 per tola. “If the current bullish trend continues, soon the price of gold will cross Rs 25,000 per tola in the domestic market also,” he added.

Earlier — on March 17 — gold had touched a historic high of Rs 25,000 per tola in the domestic market.

The huge rise in crude price that soared to a record above $145 a barrel today fuelled by concerns over a larger-than-expected drop in US stockpiles and threat of conflict with Iran, slowdown of US economy, the weak global stock markets and further weakening of the dollar have been pushing the price of gold up over the last two months.

The price of gold has jumped nearly by 20 per cent since the start of the year after rising nearly 32 per cent in 2007.

The demand that has been continuously rising in the largest gold consuming countries like India and China has also fuelled the price hike.