KATHMANDU, Aug 1: The price of gold has neared Rs 100,000 per tola (11.66 grams) in the domestic market.
The precious yellow metal was traded at Rs 99,300 per tola on Friday which is a historical high in Nepal’s bullion market. Gold price has been recording a new high since the market resumed in June. Gold entrepreneurs have been anticipating the price to go up further due to the uncertainty that is looming since the COVID-19 pandemic broke out in the world.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price hike in gold in Nepal is in line with the international price. The federation takes international price as a reference before setting its price in the domestic market. Though the government has allowed jewelry shops to operate, shop operators have said that the trade in the market is almost zero.
Mani Ratna Shakya, past president at FENEGOSIDA, said that the economic turmoil has attracted investors in the gold market. “They might return to other investment options if the situation improves in the days to come,” he said adding if that happens the gold price might see some improvements too.
The price of the precious yellow metal rose by Rs 10,400 per tola from the last rate published by the FENEGOSIDA before the country went for a lockdown on March 24. The price was set at Rs 77,000 per tola on March 23. As the gold price continues to soar, very few people are showing interest in buying the precious yellow metal.
Meanwhile, jewelry shop operators had expected the flow of gold sellers rather than buyers in the beginning and had requested not to sell their gold belongings unless it is really necessary. “They have not visited the shops as we had expected in the beginning,” he said. Gold dealers say that the upward trend of gold price might have led people to wait and sell their belongings when the price reaches an ultimate peak.