Gold prices rose to the highest level for this year, in Colombo yesterday, in line with a sharp price increase in global markets..!!!

Gold prices in record range; nearing Rs. 35,000

By Vipul Sivakumaran

Gold prices rose to the highest level for this year, in Colombo yesterday, in line with a sharp price increase in global markets.

Gold prices in Colombo are likely to be in the range of Rs 34,000 (8 grams or one sovereign) to Rs. 35,000 this week, a prominent jewellery trader told The Island.

Global gold prices shot up on Tuesday as investors sought a safe-haven investment amid ongoing concerns about the eurozone debt crisis.

A manager of a jewellery shop at the Sea Street said a gold chain, weighing eight grams, that cost around Rs. 30,000 last year was now selling above Rs. 40,000.

He said the sales had dropped compared to last year. However, a manager of another shop in Colombo 3 said sales had been good this year.

A senior gold businessman said jewellery buyers would wait and watch when prices rose in world markets. "They start buying when prices stabilise," he added.

The prices rose as Hindus awaited Akshaya Tritiya, an occasion considered auspicious for buying gold, which falls on Sunday May 16.

The festival is more popular in India than in Sri Lanka, though prominent jewellers in Sea Street will remain open on Sunday.

Pawning rates for eight grams (one sovereign) of 22 karat gold at a leading private company rose to Rs. 27,000 from Rs 25,000 two weeks. The pawning rate for 24 karat increased to Rs. 32,500 from Rs. 30,000.

The pawning rates at leading commercial banks are around Rs. 25,000 for 22 karat gold.


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