While the US dollar gold price has been consolidating in the last few weeks, the Nepalese price of the yellow metal reached a new record-high last Thursday. Traders said that local investors – as with many others around the world – are concerned about Europe's escalating sovereign debt crisis. Nepalese investors are stocking up on gold in order to hedge against a possible default by Greece. A Greek default could result in a chain reaction of failing debt and derivatives in global financial markets.
Last Thursday, the Nepalese gold price reached another record high of 43,157 rupees per 11.664 grams. Thereafter the yellow metal suffered from a slight set back in Friday's trading session and ended the week at 43,100 rupees per 11.664 grams.
India's gold price recovered further at the end of last week's trading session mainly due to stock purchases. The country's continuing marriage season still means that gold demand from the domestic jewellery industry remains high. Gold with a purity of 99.9% climbed 120 rupees to 22,865 rupees per 10 grams. The buying activities among domestic gold investors picked up again as the yellow metal's spot price at the world market increased to a three-week high at the end of last week.
India's silver price rose in the slip stream of gold by 400 rupees to 57,600 rupees per kilogram. The prices for silver coins remained almost unchanged at 66,000 for buying and 67,000 for selling 100 pieces.
