The precious yellow metal price – that has been continuously on rise since last few days – has increased by 1,200 per tola (11.333 grams) today to be traded at Rs 71,500 per tola. The bullion was traded at the cost of Rs 70,300 per tola yesterday, according to the Federation of Nepal Gold and Silver Dealers' Association (Fenegosida).
The continuous rise of gold price in the domestic market is due to the effect of international market, the association aid, adding that Rs 71,500 per tola is the new high in six years.
The bullion – after reaching a new high of Rs 71,000 per tola on Tuesday – dropped by Rs 700 per tola to Rs 70,300 yesterday. However, the price correction did not last a day, and recorded Rs 1200 rise per tola in a day, today. Escalation of trade war between the US and China, recent decision of the Federal Reserve to cut its interest rates and uncertainty over the global economy contributed to the rise of gold price in the international market, according to the association that has directly hit the price in the domestic market. As the domestic gold market is totally dependent on imports, fluctuation in gold prices in the global immediately affects the domestic market. Investors prefer buying gold whenever there is turbulence, putting pressure on its price as the precious yellow metal is perceived as a safe haven.
With the rise in price, the gold dealers are flooded with customers to sell their gold instead of buying pressure on the eve of festive season like Teej.
Prior to this, gold price had reached a peak in 2009 when it was priced at Rs 63,300 a tola. After that the price had even declined to as low as Rs 47,800 per tola in 2015. However, gold price again set a new record on June 20 to be priced at Rs 64,000 a tola.
The continuous rise of gold price in the domestic market is due to the effect of international market, the association aid, adding that Rs 71,500 per tola is the new high in six years.
The bullion – after reaching a new high of Rs 71,000 per tola on Tuesday – dropped by Rs 700 per tola to Rs 70,300 yesterday. However, the price correction did not last a day, and recorded Rs 1200 rise per tola in a day, today. Escalation of trade war between the US and China, recent decision of the Federal Reserve to cut its interest rates and uncertainty over the global economy contributed to the rise of gold price in the international market, according to the association that has directly hit the price in the domestic market. As the domestic gold market is totally dependent on imports, fluctuation in gold prices in the global immediately affects the domestic market. Investors prefer buying gold whenever there is turbulence, putting pressure on its price as the precious yellow metal is perceived as a safe haven.
With the rise in price, the gold dealers are flooded with customers to sell their gold instead of buying pressure on the eve of festive season like Teej.
Prior to this, gold price had reached a peak in 2009 when it was priced at Rs 63,300 a tola. After that the price had even declined to as low as Rs 47,800 per tola in 2015. However, gold price again set a new record on June 20 to be priced at Rs 64,000 a tola.
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