Sri Lanka’s Gold Price Up

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 Sri Lanka’s gold prices have risen slightly from a week earlier along with a recovery in the international prices, industry players said.
On Tuesday a gold sovereign (about 8.1 grams) the most popular benchmark price was quoted around 46,000 rupees for 22 carats, after falling from highs of 54,000 in March, a dealer said.The 8 gram gold biscuit was quoted around 47,500 rupees.

The 24 carat mint sovereign was quoted at 48,600 rupees, up about 1000 rupees from a day earlier, and recovering from a low of 45,000 rupees in April 17 another dealer said.

Gold jewellery traders say there is increased buying interest especially among prospective wedding couples following the end of a traditional New Year.

International gold prices of gold fell from around 1,800 US dollars last year to 1,375 dollars a troy ounce.

But prices have since recovered to about 1,425 dollars.

International commodity prices including oil and base metals including copper has also weakened amid credit fears in Europe.

Commodity price inflation or booms happen in time with money printing in reserve currency central banks such the Federal Reserve and European Central Bank.

In times of de-leveraging, currencies strengthen and commodity prices weaken.

 

Gold prices which rose to 800 dollars an ounce in 1980 later fell to about 240 dollars after monetary policy was tightened in Britain and the US.Before pure fiat paper money was born in 1971-73 gold was about 20 to 35 dollars an ounce.(LBO)

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