The strengthening dollar against Nepali rupee has pushed the gold price to yet another record high of Rs 54,705 for a tola (11.664 grams) in the domestic market.
Today, international gold price stood at $1,792 for an ounce which is $120 less than the price, when the gold had hit the highest ever spot of $1,920 in September.
Then US dollar exchange rate stood at Rs 73, but, today exchange rate stood at Rs 78.85 pushing the gold price to hit the roof, according to president of Nepal Gold and Silver Dealers’ Association (Negosida) Tej Ratna Shakya.
The depreciating Indian Currency — to which Nepali currency is pegged with — against the US dollar has strengthened dollar’s position against Nepali rupee as well.
As the Western economies are facing economic problems, they have pulled out their investment from India — draining its foreign currency reserve — weakening its currency.
The international commodity market has been witnessing the surge as the Eurozone economies are sinking in their debt crisis.
The worsening Greek situation along with near possible rock bottom for Italian economy has pushed the investors towards gold for its safe haven properties fuelling the prices.
Italy being the third largest economy of the European Union, its default will have irreparable ripples across global economy.
The sister metal silver price also rose to Rs 1,110 for a tola in the domestic market today.