By A Staff Reporter, Kathmandu, Mar. 6: Gold price set yet another new record reaching Rs 82,500 per tola (11.664 grams) in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), the gold price went up by Rs 1,800 per tola in a day's span.

On Thursday, gold was traded at Rs 80,700 per tola. 

The price of gold has been rising steadily in the domestic market for the last one month after the outbreak of COVID-19 from China.

The demand of gold increased in the international market after the investors were encouraged to invest in gold instead of other sectors as a secure investment, gold trader Tej Ratna Shakya said.

He said that spread of coronavirus in the world and improved exchange rate of the US dollar were main reasons for the soaring gold price in recent weeks.

The demand of gold increased in the international market today due to a sharp fall in the share market, he said.

The reduction of interest rate by the Federal Reserve Bank of USA has also encouraged the investors to invest in gold rather than in other sectors, giving a rise to its demand as well as price for the last few days.

The price of gold has increased to US$ 1,671 per ounce in the international market today from US$ 1,641 on Thursday.

Devaluation of Nepali rupees against the US dollar has also made the  gold dearer in the local market, he said.

Likewise, today’s exchange rate of one US dollar reached Rs. 118.80 while it was Rs. 117.58 on Thursday.

 Increasing price of gold has also affected their business badly, he said.

He said that the present international scenario showed that the price of gold might even go higher.

It has been increasing continuously for three days, he said. “The price of gold increased by Rs. 2,200 per tola on Wednesday and Rs. 200 per tola on Thursday.”