Spot gold stuck a record $1888 per troy ounce in the international bullion market during early trading in the international bullion market on Monday.[break]
Tej Ratna Shakya, president of Nepal Gold and Silver Dealer´s Association (Negosida), attributed the rise to increased consumption of the yellow metal by India and China following downgrading of the US credit rating. He also said price rise on Monday was also because of slowdown in global stock market amid growing uncertainties.
The Venezuelan government´s decision of withdrawing its gold held at US and European banks also contributed to rise in gold prices.
Gold has become dearer by Rs 4,000 per tola in the domestic market in a week´s period. Rising gold prices, meanwhile, have caused sales volume of gold to drop by less than 25 percent.
Price of silver also increased to Rs 1,230 per tola in the domestic market on Monday.
Shakya expects the yellow metal to glitter further in the coming days as there is no sign of global economy returning to normalcy anytime soon.
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