Laxmi Capital News
Gold continues to glitter

Gold price hasremained unchanged at Rs 58,500 per tola this week.

The yellowmetal was traded at Rs 58,300 per tola on Friday. The price has remained at thesame point ever since. Gold price has been increasing steadily since lastWednesday when the yellow metal was traded at Rs 57,400 per tola.

According tothe traders, the main reason behind the increment in gold price is price hikein the international market due to various reasons including the impendingtrade war between the United States and China which have prompted investors toseek refuge in safe assets. 

According toofficials of the Federation of Nepal Gold and Silver Dealers Associations, theprice of gold in the Nepali market has increased in line with the internationalmarket. “Gold price has gone up in the international market as investors areinterested to put their money on the yellow rather than stock market,” saidMohan Kumar Sunar, president of the federation. “Global stock markets are in abearish mode due to escalating tensions between China and the US, and thisprompted investors to look for secure investment i.e. gold. This has causeddemand for gold to spike up.”

Reutersnewswire have reported that gold prices rose early Monday to a five-week highas the threat of a trade war between the United States and China droveinvestors to seek refuge in safe assets. Gold was traded in the internationalmarket at US$ 1,350.76 per ounce on Monday. 

Likewise,another report of the newswire states that the decision of the US government toexpel 60 Russian diplomats also caused gold price in the international marketto further rise. “Gold prices rose for a third straight session on Tuesday asthe dollar languished near a five-week low, as investors eyed rising tensions between Russia and the West even as a US-Chinatrade spat appeared to ease.  Spot gold was up 0.16 percent at $1,355.19per ounce at 0739 GMT, after touching $1,356.66 earlier in the session, itshighest since February 16,” Reuters reported.

Sunar,however, is hopeful that the tension between the two giant economies will easesoon as the stock market jumped on Tuesday following the beginning of the negotiationsbetween China and the US. “Stock markets jumped in response to reports theUnited States and China were negotiating to avert a trade war and this dentedthe appeal of gold, seen as a safe haven.” 

Gold pricedropped to $1,344.11 on Tuesday afternoon. 

According tothe federation, the highest recorded price of gold in the Nepali market was Rs63,300 per tola recorded on August 28, 2013.

Source:MyRepublica, 28th March 2018

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