As the Hindu festival Teej — when the women buy gold ornaments — nears, the precious yellow metal is looking to cross Rs 60,000 per tola (11.664 gram).
According to Nepal Gold and Silver Dealers' Association, gold was traded at Rs 59,398 per tola in the domestic market today from yesterday's Rs 59,194 per tola.
The weak rupee against the US dollar is expected to send the price of the gold higher in the domestic market this whole week, the association said, adding that the rising price has frightened the buyers as there is no demand in the market.
Traditionally, gold is used as ornaments but lately it has been also used as investment because of the rising price in the market.
During the first 11 months of the last fiscal year 2011-12, the country witnessed Rs 22.82 billion worth gold, despite continuous rise in the price, according to the central bank. "The country had witnessed an import of Rs 39.40 billion worth gold in the 11 months of fiscal year 2009-10, which has come down to Rs 22.82 billion in the same period of the last fiscal year."
Though the domestic market price of gold is determined on the basis of international price, the rise and fall of US dollar also affects the price of the precious yellow metal in the domestic market.