Gold price reaches record high, per tola price reaches Rs. 156, 300

By A Staff Reporter,Kathmandu, Sept. 14: Gold price reached an all-time high in the domestic market on Friday after its price increased by Rs. 3,000 on a single day. 

According to the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), the gold price increased by Rs. 3,000 per tola on Friday and it was traded at Rs. 156,300 per tola. 

A tola of gold was traded at Rs. 153,300 in the local market on Tuesday.

The gold price has been setting one new record after another in the local market for the past few weeks. 

Earlier on September 11, the price of gold had set a record by reaching Rs. 153,400 per tola.

Similarly, the price of silver has increased by Rs. 65 per tola to Rs. 1,865 in the local market on Friday. 

The significant increment in the gold price in the international market has contributed to the increase in its price in the local market, said Diyesh Ratna Shakya, Senior Vice President of FENEGOSIDA.

The price of gold has increased significantly in the international market after the European Central Bank (ECB) reduced the interest rate by 0.25 percentage points to 3.5 per cent.

The ECB had reduced the deposit interest rate from 4 per cent to 3.75 per cent for the first time in June this year.

On the other hand, the American central bank, the Federal Reserve, has also decided to reduce the interest rate, he said. 

Due to the cut in the interest rate, the investors are encouraged to invest in gold instead of the dollar which led to the demand and price rise of gold, he said.

Record high prices in the international market Not only in Nepal but also in the international market, the gold price set a new record on Friday as the precious yellow metal was traded at 2,568.5 US dollars per ounce in the international market.  

The price of gold increased by 51 USD per ounce on Friday as compared to Thursday's price in the international market. The price of gold was USD 2,517 per ounce in the international market on Thursday.

"Prices in Nepal are adjusted according to the international market," said Shakya.

According to Shakya, looking at the current situation of the price of gold in the international market, the price of gold in the international market will increase further, which will have a direct impact on Nepali market as well.