Sovereign Gold Touches Rs 20,800 in Kerala

15 April 2013
Thiruvananthapuram

The decline in gold price continued on Monday with the price of eight gram sovereign touching Rs 20,800 in Kerala, a fall of Rs 400 from the previous trading day. The price dropped by Rs 50 per gram to trade at Rs 2,600. Globally, the gold prices touched the lowest in the last two years.

Banks and gold sellers across the world rely mainly on the prices fixed by LGMFL( London Gold Market Fixing Ltd ), a private company of which Barclays Capital, Deutsche Bank, Scotiabank, HSBC and Societe Generale are members. This group fixes the price of gold, twice a day, based on the demand across the world.

Muthoot Finance’s share price came down by 13.1% on the Bombay Stock Exchange ( BSE) to touch Rs 131.35, while that of Manappuram Finance fell by 9.84% to reach Rs 17.40%. However, George Alexander Muthoot, managing director, Muthoot Finance claimed that 15-20% price fluctuation in gold prices is already factored in their business model. B Balaji, the owner of Rathnamahal Jewellery in Thiruvananthapuram, said that gold investors are trying to sell their gold fearing a further crash in price. “I get around five to six enquiries every day,” he said.

Source– http://timesofindia.indiatimes.com/business/india-business/Price-of-sovereign-gold-touches-Rs-20800-in-Kerala/articleshow/19571410.cms

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