By A Staff Reporter
Kathmandu, Aug.1: Price of precious yellow metal reached Rs. 99,300 per tola in the domestic market on Friday.
According to Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), gold price increased by Rs. 300 per tola (11.66 grams) in the local market today and traded at Rs. 99,300 from Rs. 99,000 per tola on Thursday.
Gold price has been increasing continuously in the local market for the last two weeks, setting new record each day, said Tej Ratna Shakya, a gold trader.
Price of gold has gone up by Rs. 2,500 a tola in the local market over the week. The gold price was Rs. 95,800 last Friday.
Likewise, it was traded at Rs. 96,300 on Sunday, Rs. 97,500 on Monday, Rs. 98,200 on Tuesday and Rs. 98,500 on Wednesday.
However, price of silver dropped to Rs. 1,200 per tola Friday from Rs. 1,245 per tola on Monday.
Skyrocketing price of gold in the international market is leading to price surge in the local market, Shakya said, adding that the ongoing trade war between America and China and the impact of COVID-19 are major factors for the inflated price globally.
The gold price on Friday morning stood at USD 1,971 per ounce in the international market but reached USD 1,977 in the evening.
He said that gold price would cross Rs. 100,000 per tola in the local market shortly as the price was highly fluctuating in the international market. Gold price will cross Rs. 100,000 in local market when its price reached USD 1,980 per ounce.
No gold import
The transaction of gold has almost been nil in the market due to the price increment.
There was no import of gold for the last few months due to the soaring price and lockdown in the wake of COVID-19 pandemic.
“The gold has caused no impact in the country’s foreign currency reserve despite its increased price as the banks were not importing gold with the slump in demand,” Shakya told The Rising Nepal.
Shakya said that banks had around 300 kilogram of gold in stock.
The government had reduced gold import quota to 10 kilogram a day in April following the enforcement of lockdown.
Traders are buying very nominal quantity of gold from the banks as the transactions were reduced due to the increased price and pandemic, he said.