KATHMANDU, August 9: The price of gold on Monday dropped by Rs 1,000 per tola (11.66 grams) bringing the price below Rs 90,000 per tola in the past three months.
The price of bullion stood at Rs 89,900 per tola last time on April 30, shows the record of the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA). International media have reported that the gold price has been going down on the back of the soaring prices of US dollar in the international market.
According to Reuters, gold fell to its lowest in more than four months, dropping as much as 4.4 percent at one point on Monday, as the dollar rallied after strong US labor data bolstered expectations for early tapering of economic support. Nepal Rastra Bank’s report also shows that Nepali currency has plunged as low as Rs 118.96 per US dollar.
“The dollar’s spike to a two-week high also hurt appetite for gold by making it more expensive for holders of other currencies,” reports Reuters on Monday, quoting Arundhati Sarkar. The price of yellow metal in the Nepali market mainly depends on its price in the international market.
With the declining price of gold, its price in the domestic market has gone down by Rs 3,300 per tola in a week, according to the FENEGOSIDA.