Gold was traded at Rs 55,200 (11.664 grams) per tola in the domestic market on Tuesday. [break]
The price of yellow metal in the international market was hovering around $1768 per troy ounce on the day.
Officials of Negosida attributed upward revision in gold prices in the last week to instable US dollar, depreciation of Indian currency against US dollar, increase in prices of petroleum products and bearish stock markets.
“As the sovereign debt crisis that started with Iceland and Greece is threatening to spread across the globe, international investors are turning their focus on gold instead of fluctuating euro and dollar,” said Tej Ratna Shakya, president of Negosida.
Rise in gold price, meanwhile, has lowered the demand for the yellow metal in the domestic market.
According to gold dealers, daily demand has dropped to as low as 20 kg a day from as high as 45 kg a day recorded during the same period of last year.
They, however, are hopeful that sales would pick up once the wedding season starts.
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