Sunday, July 26, 2020

Gold price hits new record high of Rs 96,300 per tola

Gold price hit a new record high of Rs 96,300 per tola (11.664 grams) with the increasing price in the international market due to worsening US-China row. The dispute is feared over the hit to a global economy already reeling through the coronavirus pandemic.
The Federation of Nepal Gold and Silver Dealers' Association (Fenegosida), which fixes the price of precious metals in the domestic market, hiked the price of gold by Rs 500 per tola today to set a new record high. The precious yellow metal – in the last five months – has become expensive by Rs 17,500 per tola, an increase of over Rs 3000 per months, the association said, adding that the price on February 24 – a month before Nepal imposed nationwide lockdown – stood at a record high of Rs 78,800 per tola.
The soaring price of gold in the international market is attributed to the investors resorting to the precious metal as a safe landing following the dwindling global economy by the impact of coronavirus and the deepening tension between two giant economies; the US and China.
The price of precious metals in the international market and the exchange rate of US dollar against the Nepali Rupee are the two reasons behind the price revision in the domestic market. Apart from the two reasons, gold price is further affected by the government’s decision to hike the duty through the budget for the current fiscal year 2020-21. The government has increased the customs duty on gold import by Rs 2,000 to Rs 8,500 per 10 grams and silver by Rs 1,000 per kilogram to Rs 8,500.
The the precious metal price increased by 5 per cent in the last week alone, the largest weekly gain in gold price since 2011, according to the international media. “The gold price hovers around $1,906 per ounce in the international market.”
Along with precious yellow metal, silver has also set a record high price of Rs 1,155 per tola in the domestic market. 

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