February 19, 2020 12:09 PM NPT
Photo: Keshab Thoker/Republica Files
KATHMANDU, Feb 19: The price of gold marched to a fresh high of Rs 76,700 per tola (11.664 grams) in the domestic market on Tuesday.
The yellow metal was traded at Rs 76,500 per tola on Monday, but gold price went up by Rs 200 per tola on Tuesday morning, according to the Federation of Nepal Gold and Silver Dealers' Associations that fixes the price of yellow metal in the domestic market.
Dharma Sundar Bajracharya, general secretary of the federation, told Republica that the sudden rise in gold price in the international has taken him by surprise. "We were expecting bullion prices to fall due to the recent outbreak of coronavirus. But it seems that investors are taking gold as a safe haven. People of Europe and the US are investing in gold which caused the prices to go up," he added.
The price of gold has been rising steadily in the domestic market since July, 2019, with occasional drops. The previous high of Rs 76,500 per tola was set in January.
Meanwhile, traders say that the demand for gold has fallen even during wedding season due to high prices. They say demand has fallen from average daily demand for 50 kg.
“There is high chance that the price will increase further in the coming days. But good thing is, people have stated realizing that gold price will remain more or less in the current range," he added. "We expect the demand to pick up gradually."
Wedding season is one of the main seasons for gold purchase in Nepal after Teej and Deepawali festival, according to jewelers. "We are getting wedding shoppers. But most of them have reduced their gold purchase," added Bajracharya.