Gold at record high of Rs 75,500 per tola

KATHMANDU, Jan 6: The price of gold climbed to a record high of Rs 75,500 per tola (11.664 grams) in the domestic market on Sunday. 

According to the Federation of Nepal Gold and Silver Dealers' Association, which fixed prices of the yellow metal in the local market, gold price went up by Rs 1,000 per tola in a day. The yellow metal was traded at Rs 74,500 per tola on Saturday.

Mohan Kumar Sunar, president of the federation, termed the sudden hike in gold price to rising conflict between the US and Iran. 

“Everyone is aware about the ongoing conflict between the US and Iran. The conflict has forced investors to turn to safe havens like gold," he said. "The other reason is issues related to US-China trade.”

The price of gold has been rising steadily in the domestic market since July with occasional drops. It had climbed to Rs 73,500 per tola on September 4 and December 31 last year.

Gold dealer say that the increasing price has affected their business in this fiscal year. Though festive season and wedding season had given them some ray of hope, business was low throughout the year. 

Many customers put off gold buying due to rising prices, they added.

Meanwhile, glittering gold has been pushing down demand of gold in the domestic market for several months. While traders say that the daily demand for gold would be around 50kg during high season, demands have fallen this year even during high season due to rising prices.

Aashis Shakya, the owner of Shakya Gold and Silver Jewelry, isn't much optimistic about recording good sales this year. "The rise in gold prices has hugely affected our business. We are getting only few years. Our sales drop to almost nil on some days," he said, adding: "It is becoming hard for me to even pay my bills. I am waiting for the wedding season to start."