Gold price falls by Rs. 4,000 per tola, dollar value rises

By A Staff Reporter

Kathmandu, Nov. 8: The prices of gold and silver have decreased noticeably on Thursday.

The price of gold has dropped by Rs. 4,000 per tola in the domestic market in a single day on Thursday as compared to Wednesday’s price.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of gold decreased to Rs. 164,500 per tola (11.664 grams) today compared to Rs. 168,500 of Wednesday’s price.

The gold price had set a record high price on Thursday last week (October 31) as the yellow metal was traded at Rs. 171,000 per tola.

Likewise, the price of silver has also decreased by Rs. 55 per tola to Rs. 1,960.

The price of gold has decreased sharply on Thursday in the local market due to decrease in its price in the international market, said Tej Ratna Shakya, gold trader and special member of the FENEGOSIDA.

According to him, with the rise in the exchange rate of the US dollar, the price of gold has come down as investors have been attracted to the dollar and the pressure to sell gold has started.

After Trump’s election as new US President, people and investors in global market, including USA started to invest in share market and dollar by selling gold which led to decrease in gold price, he said.

"Selling pressure of gold has led to decrease in its price in the international market as the international investors are encouraged to sell gold by ensuring profit," he said.

Fluctuations in the international market price have its impact in the domestic bullion market as well, he said.

Gold price in the international market has decreased by US$ 78 per ounce to US$ 2,660 today, he said. Price of gold was USD 2,738 per ounce in the international market on Wednesday. 

The present scenario shows that the price of gold would further decline in the international market, he said. 

However, he said, due to the devaluation of the Nepali rupee against the US dollar, the price of gold in the domestic market did not fall in line with the decline in the international market.

Compared to the decrease in the price of gold in the international market, it should have decreased by at least Rs. 5,000 per tola in the Nepali market.

Nepali rupee falls to record low against USD

Nepali rupee plunged to an all-time low against the US dollar on Thursday. 

The Nepal Rastra Bank (NRB) has fixed the selling exchange rate of one US dollar at Rs. 135.16 for Thursday.

Earlier, the exchange rate of a dollar was recorded at Rs. 134.89 on November 5, 2024. This price is 30 paisa higher than the previous record.

Under the current system, the exchange rates quoted by different commercial banks may differ, the NRB said.

Nepali rupee has continuously depreciated against the US dollar for the last few months and reached a historic record today.

Nepali currency has come under pressure owing to the devaluation of the Indian rupee with which it is pegged. The Nepali rupee has a fixed exchange rate of Rs. 160 for IRs. 100.