The precious yellow metal price – that has been rising since the last few weeks – set a new record of Rs 70,000 per tola (11.664 grams) in the domestic market today, as it continued to rise on the sixth consecutive day today.
The price of gold surged by Rs 500 per tola today to reach Rs 70,000 per tola – for the first time in Nepal – confirmed Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida). “The gold price has increased by Rs 4,500 a tola in the last three weeks.”
The hike in gold price in the domestic market is mainly due to rise in the price of the precious metal in the global market. The trade dispute between the United States and China, along with increased tariffs by the US on Chinese goods resulted in investors flocking to gold, which is considered a safe investment, pushing the gold price is expected to rise further. “Government decision to hike import tax on gold has also made gold dearer in the domestic market,” the bullion traders said, adding that the government – through the budget for fiscal 2019-20 – had increased the import duty on gold by Rs 800 per 10 grams. “Thr gold importers now have to pay import tax worth Rs 5,000 per 10 grams, against Rs 4,200 per 10 grams earlier.”
Due to continuious surge in the price, the daily demand of raw gold in the domestic market has gone down to less than 10 kg from the normal market demanded of almost 30 kg of raw gold daily, according to the federation. “Due to falling demand, the commercial banks have also stopped importing gold temporarily.”
According to Nepal Bankers’ Association (NBA), commercial banks have almost 560 kg gold in stock.
With gold prices following a high trajectory, the bullion traders said the value could reach up to Rs75,000 per tola. On Wednesday, gold soared over 2 per cent to break the $1,500 barrier for the first time in over six years.
Similarly, the price of silver has also increased by Rs 15 to reach Rs 825 per tola.
The price of gold surged by Rs 500 per tola today to reach Rs 70,000 per tola – for the first time in Nepal – confirmed Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida). “The gold price has increased by Rs 4,500 a tola in the last three weeks.”
The hike in gold price in the domestic market is mainly due to rise in the price of the precious metal in the global market. The trade dispute between the United States and China, along with increased tariffs by the US on Chinese goods resulted in investors flocking to gold, which is considered a safe investment, pushing the gold price is expected to rise further. “Government decision to hike import tax on gold has also made gold dearer in the domestic market,” the bullion traders said, adding that the government – through the budget for fiscal 2019-20 – had increased the import duty on gold by Rs 800 per 10 grams. “Thr gold importers now have to pay import tax worth Rs 5,000 per 10 grams, against Rs 4,200 per 10 grams earlier.”
Due to continuious surge in the price, the daily demand of raw gold in the domestic market has gone down to less than 10 kg from the normal market demanded of almost 30 kg of raw gold daily, according to the federation. “Due to falling demand, the commercial banks have also stopped importing gold temporarily.”
According to Nepal Bankers’ Association (NBA), commercial banks have almost 560 kg gold in stock.
With gold prices following a high trajectory, the bullion traders said the value could reach up to Rs75,000 per tola. On Wednesday, gold soared over 2 per cent to break the $1,500 barrier for the first time in over six years.
Similarly, the price of silver has also increased by Rs 15 to reach Rs 825 per tola.
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