In past two years, gold price skyrocketed to Rs 186,000 from Rs 110,000 per tola
KATHMANDU, April 15: The price of gold jumped by Rs 47,000 per tola (11.664 grams) in the domestic market in the past one year mainly due to the surge in the price of the precious yellow metal in the international market.
The records with the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA) show that the price of gold reached Rs 186,000 per tola on Sunday, the last day of Nepali year 2081 BS. On April 13, 2024 the first day of the Nepali year 2081, the price was recorded at Rs 139,000 per tola. This shows that the price of the precious metal escalated by 33.81 percent during the one-year period.
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The price of gold in the domestic market started to surge after the government hiked the customs rate on gold imports from 15 to 20 percent through the budget announcement on May 28, 2024. Subsequently, the price soared to Rs 146,900 per tola in a month. By winter, the price had peaked to Rs 167,200.
The price of gold pacified to some extent after the government withdrew the increased customs duty on gold imports on November 25. As a result, the price of gold dropped significantly by Rs 15,900 per tola in a single day in the domestic market, to Rs 151,300 per tola, down from Rs 167,200.
Tej Ratna Shakya, a gold trader and a former president of the FENEGOSIDA, told Republica that the price of gold has increased in the local market due to the effect of increased price in the international market as well as the government’s decision to raise the customs duty. According to him, soaring prices of the precious yellow metal also impacted domestic demand in the bullion market.
According to the FENEGOSIDA, gold was traded at Rs 110,000 per tola in the local market on April 14, 2023, the first day of 2080 BS. This shows that the gold price increased by Rs 76,000 per tola in the past two years.
As per international media reports, gold price started to take an upward graph recently citing the US-China trade war after the US President Donald Trump hiked tariff rates on imported goods from various countries including China. “The dollar fell against its peers, making greenback-priced bullion cheaper for overseas buyers, which helped increase demand for gold in the international market,” reads Economic Times. Due to this reason, the gold price increased Rs 11,500 per tola last week alone.
Meanwhile, the price of silver too surged 12 percent during the review period. The FENEGOSIDA records show that the price of silver soared to Rs 1,960 from Rs 1,750, an increase of Rs 210 per tola in the past year. According to bullion traders, the price of silver rose after buyers thronged to purchase silver ornaments following the massive hike in gold price.
