KATHMANDU, Feb 25: The price of gold climbed to a new record high of Rs 80,300 per tola (11.664 grams) in the domestic market on Monday.
The price increased by Rs 1,500 in a single day. According to the Federation of Nepal Gold and Silver Dealers' Association, the yellow metal was traded at Rs 78,800 on Sunday.
Dharma Sundar Bajracharya, general secretary of the federation, stated that the increase in price of gold is due to the outbreak of coronavirus.
“The outbreak of coronavirus has attracted investors to gold. People of Europe and the US are investing in gold which has caused the price of gold to go up,” said Bajracharya.
The price of gold has been steadily rising for six days except on Saturday as the market is closed on Saturday. The price of gold has been increasing since February 18.
The price of gold on February 18 was Rs 76,700 per tola. The price increased by Rs 400 on February 19 and climbed to Rs 77,100. Similarly, the price of gold increased by Rs 500 on February 20 and set up a new record of Rs 77,600. Likewise, the price of gold increased by Rs 500 on February 21 and reached a new record of Rs 78,100. The price of gold again reached a new record on February 23 of Rs 78,800 as it increased by Rs 700.
The price of gold has been rising steadily in the domestic market since July, 2019, with occasional drops.
Bajracharya, who also owns a gold shop named Kathmandu Ornaments in New Baneshwor said that he has stopped taking new orders from the customers. “As the price of gold has skyrocketed, I have stopped taking new orders from customers and currently I am selling readymade jewelry and making old orders,” he said, “There is a high chance that the price of gold will increase more than this after analyzing the international market.”
Gold dealers say that the increasing price has affected their business this year. Though festive and wedding seasons had given them some ray of hope, business was low throughout the year.
Rajendra Bajracharya, owner of Bajracharya Gold Shop, has seen less business this year due to the continuous price hike of gold. “Customers have limited purchase of gold. They only buy it if it is required. I used to have a lot of customers who made gold jewelry time and again in different designs but now very few customers arrive in my shop which has hugely affected my income,” said Rajendra.
Nunu Subedi, a homemaker who currently resides in Kapan said that the price of gold has affected her. “The price of gold has greatly increased and I have limited my purchase although it is the wedding season. Wedding and gold have relation in our culture as we need to provide gold as gift if our close relative is getting married but the current price of gold has troubled us,” said Subedi.