By A Staff Reporter

Kathmandu, Feb : 3 The price of gold has increased by 500 per tola in the local market on Sunday. The yellow metal was traded at Rs. 76,500 per tola today.
The price of gold had reached Rs. 76,500 per tola on January 3, 2020 which was the highest price of gold ever recorded in Nepal.
The price of gold has increased in the international market which led to a rise in its price in the domestic market, said Tej Ratna Shakya, special member of Federation of Gold and Silver Dealers’ Association.
“The demand of gold has increased in the international market as the investors are willing to invest in gold as safe and secure asset that contributed to increase its price,” he told The Rising Nepal.
The international share market has decreased due to the fear of investors’ concerns over a coronavirus outbreak in China, resulting in an increase in gold demand, he said.
“It is adding a level of uncertainty to the overall market that is forcing people to consider safer investment in the event fearing further spread of the disease,” said Shakya.
The price of gold has increased by US$ 17 per ounce to US$ 1,589.70 per ounce on a single day, he said, adding that that present fluctuation of gold price in the international market showed that its price would further increase in the local market.
“As per the market analyses, the price of gold will reach Rs. 80,000 per tola in local market,” he said.
The international market is very sensitive, he said, adding that the foreign investors and general people are making investment in gold when there occurred any accident, which resulted in an increase of its demand as well as price.
He further added that the devaluation of Nepali rupees against US dollar has also made gold dearer in the local market.
Likewise, today’s exchange rate of one US dollar reached Rs. 114.75.
According to him, fresh demand of gold has been increasing lately due to wedding season. The daily demand of gold reached 20 kilograms, he said. The demand of gold was below 10 kilograms three weeks ago.
He, however, said that the present demand of gold was low because the demand of gold was 40 kilograms a day in the same period a year ago.