Tuesday, June 25, 2019

Gold hits record high of Rs 65,500 per tola

The price of gold climbed to record a high of Rs 65,500 per tola (11.664 grams) in the domestic market today. The precious yellow metal was traded at Rs 65,000 per tola yesterday.
Gold price has been rising continuously in the domestic market for the last few days also due to rise in the price in the global markets.
The international market is turning to gold for investment because of US-China trade war and US-Iran conflict among other reasons, according to the gold traders.
Also the government, through the budget for the fiscal year 2019-20, has decided to increases customs duty on gold to Rs 500,000 per kg from Rs 80,000 at present. “The customs have started levying new duty immediately after the budget was announced on May 29,” according to the Federation of Nepalese Gold and Silver Dealers Association (Fenegosida). “It has also contributed to rise in the price of gold.”
According to Fenegosida, the price of gold has gone up by Rs 2,500 per tola in a week from June 19 to 25. Gold was traded at Rs 63,000 per tola last Wednesday. But the price climbed up by Rs 1,000 per tola on Thursday and remained unchanged till Monday, before going up by Rs 500 per tola today.
According to central bank, Nepal imported gold worth Rs 32.2 billion in the fiscal year 2017-18, up from Rs 27.43 billion worth of gold in fiscal year 2016-17. “Import bill of gold has reached Rs 29.04 billion in the first ten months of the current fiscal year 2018-19,” the data revealed.
The government has allowed import quota of 20 kg per day for gold. The central bank allows commercial banks to import gold and sell to dealers. But the dealers complained that the gold trade has come down to more than half due to rising price. “The trade has come down to 12 kg per day from almost 25 kg per day,” the Fenegosida said, adding that the number of consumers visiting jewelry shops to sell gold in their stock is higher than those approaching to buy.

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