By A Staff Reporter,Kathmandu, Feb. 3: The price of gold hit an all-time high in the country on Thursday amid an increase in the price of yellow metal internationally and depreciation in rupees.
Price of precious yellow metal set a historic record today after the price of a tola of gold reached Rs. 107,500 in the domestic bullion market. It is the highest price of gold ever recorded in Nepal. It has broken its previous high of Rs. 106,900 last Thursday.
The price of gold has increased by Rs. 1,200 per tola (11.66 grams) today and was traded at Rs. 107,500 per tola. Gold was traded at Rs. 106,300 per tola on Wednesday.
A significant increment in the gold price in the international market has contributed to the increase in its price in the local market for the last couple of days, said Manik Ratna Shakya, president of Federation of Nepal Gold and Silver Dealers’ Association.
“The increase in the gold price in the international market and devaluation of Nepali currency against the US dollar are the main reasons behind its high price in the local market,” he said.
The price of gold increased to 1,955 USD per ounce in the international market today, he said, adding that the volatile trend in the gold price in the international market showed that its price would further increase in the local market.
For the past few days, the price of precious yellow metal has been fluctuating by over USD 30 per ounce in the international market which affected the gold business in the market, he said.
“The ongoing war between Russia and Ukraine and rising inflation in the international market are the main reasons behind the surge in gold price in the international market as the investors are encouraged to invest in gold,” he said.
Devaluation of Nepali rupee against US dollar has also made gold dearer in the local market, he said.
Likewise, today’s exchange rate of one US dollar reached Rs. 131.38
People selling jewellery increasing
Shakya said that the skyrocketing price of gold and silver would affect business along with consumers and employees engaged in this sector.
“Daly demand for gold stood at around 25 kgs at present which is low as this is the high demand season for gold due to the wedding season,” he said.
According to him, people are only purchasing gold to fulfil their necessities.
Besides, the flow of people is increasing in the jewellery shops to sell their ornaments to fulfill their economic necessities due to price hike, he said.
“There is no data on how many old ornaments are coming for sale in the market every day.
But it is estimated that more than 20 kg of old-jewellery is sold in the market daily," he said.
Due to the weak economic condition of people caused by COVID-19 pandemic and unable to pay bank interest rates, general people and traders are also encouraged to sell jewellery to manage expenses and resolve their problems.