Nepal Gold and Silver Dealers Association (Negosida) on Tuesday fixed the price of gold at Rs 46,900 per 10 grams, up from Rs 46,040 of Monday, attributing the decision to sharp rise in prices of gold in the international market. [break]
“Worries about Italy´s debt problems are mounting and primarily this caused the international price to go up. This affected domestic bullion market,” said Tej Ratna Shakya, president of Negosida.
He also said gold price in the international market had jumped by around $ 25 per troy ounce (31.103 grams) overnight when the association fixed the rate.
Agencies reported that the fresh development in euro zone crisis, which soared Italian government bond yield to near 15-year high, caused the gold price to jump by 2 percent in the international market on the day.
On the day, gold had jumped to as high as $ 1,795 per troy ounce in the international trading. Although the price was not a new high, Shakya said it caused price in Nepal to touch new high because of weakening of rupee against US dollar.
Though gold prices in the mid-day trading eased to $ 1,786 per troy ounce, it settled at $ 1,792 later in the day.
Given the nature of problem, which soared safe haven demand, analysts have even predicted that gold could easily cross over $ 1,800 per troy ounce in the short-term.
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