By A Staff Reporter, Kathmandu, Feb. 18: The price of gold set yet another new record in the domestic bullion market on Tuesday.

The price of a tola of gold reached Rs. 76,700, the highest price of the yellow metal ever recorded in Nepal.

The price of gold increased by Rs. 200 per tola (11.66 grams) today and was traded at Rs. 76,700 per tola. On Monday, it was traded at Rs. 76,500 per tola.

A significant increase in the gold price in the international market has contributed to the increase in its price in the local market for the last couples of weeks, said Tej Ratna Shakya, a gold trader.

The price of gold had reached Rs. 76,500 per tola on January 3, 2020 that was also a record high price in Nepali gold market.

“The demand for gold has increased in the international market as the investors are buying gold as safe and secure asset, and it also contributed to the price rise,” he told The Rising Nepal.

The international share market and other trading activities have dropped due to the fear of investors’ concerns over the coronavirus outbreak in China, resulting in an increase in gold demand, Shakya said.

“The international market is very sensitive, and the investors and general people tend to make investment in gold whenever any incident occurs and it has resulted in an increase of its demand as well as price,” he added.

The price of gold increased to 1,587 USD per ounce in the international market today, he said, adding that present fluctuation of gold price in the international market indicated that its price could increase further in the local market.

According to him, fresh demand of gold had significantly decreased in the local market even in the wedding season due to its soaring price.

Currently, the demand for gold is less than 20 kilogram a day which was above 30 kilogram a month ago and 40 kilogram during the wedding season a year ago.

He, however, said that the price of silver in the local market stable. A tola of silver was traded at Rs. 890 Tuesday.