KATHMANDU, Sept 27: The price of gold in the domestic market inclined to Rs 5,400 per tola (11.6638 grams) last week due to the soaring price of precious metal in the international market.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price went into an upward move in five out of six-day trading. The price kept increasing in the first four days and reached the record high price of Rs 223,000 per tola on Wednesday. It, however, declined by Rs 1,700 per tola on Thursday. The price again increased Rs 1,200 per tola on Friday to close for the week.
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The FENEGOSIDA said the price surged mainly due to emerging countries including China stepping up to increase their gold reserves. “In addition, the US Federal Reserve adopting the flexible monetary policy also impacted the gold price in the international market.”
As per international media, the gold price was impacted by investors’ speculations over the US inflation data amid declined weekly jobless claims in the world’s largest economy. "The biggest short-term risk for gold is a hotter-than-expected personal consumption expenditures reading. If inflation surprises on the upside, it could boost the dollar and weigh on gold temporarily." Reuters reports.
Meanwhile, the price of silver inclined Rs 120 per tola during the review period. The records with the FENEGOSIDA show that the silver price increased to Rs 2,740 per tola from Rs 2,620.
