Despite historic high price, customers are not selling their gold

KATHMANDU, July 23: The gold price in the domestic market has recorded a historic high of Rs 94,000 per tola (11.66 grams) on Wednesday.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of the precious yellow metal saw a hike of Rs 1,300 in a single day as it was traded for Rs 92,700 per tola on Tuesday.

“The price has been going up in line with the international pricing of gold,” said Mohan Kumar Sunar, president at FENEGOSIDA, “COVID-19 has impacted the businesses and economies across the world which has attracted investors to the gold market.”

As a result of investors flocking to the gold market, the price has been going up and it is unlikely to deviate from the trend anytime soon. “There are chances that the price might go up in the days to come,” he told Republica Online.

According to FENEGOSIDA, the trade of gold has been stagnant and has recorded almost nil transactions in recent times. However, the trend of people selling their jewelries is not as high as the gold dealers had expected at the beginning of the resumption of their services.

He said that there have not been many local purchases as we had expected as people might have already sold their gold because of the economic crisis during the lockdown. “As the price is going up, they might be waiting for it to go much higher before they trade gold belongings,” he further added.