The price of one sovereign of 24 Karat gold in Sri Lanka reached Rs. 100, 000 today.
Assistant Director of Assaying and Hallmarking of the National Gem and Jewellery Authority Indika Bandara told Newswire that a sovereign of 22 karat gold in Sri Lanka is priced at Rs. 93, 000.
The price of a sovereign of 22 Karat gold saw a jump of Rs. 6000 in comparison to yesterday, he said.
Bandara said at the beginning of the coronavirus outbreak a sovereign of 22 karat gold was priced between Rs. 82,000 and 84, 000.
“There is an increase in gold prices due to a reduction in gold reserves in Sri Lanka and a lack of stocks in the gold market. The reduction in gold auctioned by banks has also contributed to the price increase. The purchasing of stocks of gold in bulk saw a drastic reduction due to the coronavirus pandemic and air travel being restricted in many countries”, he said.
Indika Bandara further said they intend to rebuild the gold reserve in the country by recommencing the purchase of gold as and when restrictions on air travel are lifted.
The price of gold is expected to normalize by August 2020, he added. (Newswire)