KATHMANDU, Jan 4: The price of gold has hit a new record of Rs 74,500 per tola (11.664 grams) in the domestic market on Friday.
The price increased by Rs 1,000 in a single day. According to the Federation of Nepal Gold and Silver Dealers' Association, the yellow metal was traded at Rs 73,500 on Thursday.
According to Dharma Sundar Bajracharya, general secretary of the federation, there are more chances of gold price increasing in the market in upcoming days.
“In my analysis, the price of gold will increase further and it may reach up to Rs 80,000 in future. The reason for increase in price of gold is due to conflict between Iran and America,” said Bajracharya, “The other reason for increase in price of gold is due to the fluctuations in Indian currency.”
Earlier, the price of gold was recorded high on September 4 and December 1 at Rs 73,500 per tola. The price of gold has been rising steadily since July with occasional falls.
According to gold traders, the increasing price has affected their business this year. Festive season and wedding season gave some ray of hope for gold traders, but the business was low rest of the year. Customers hesitated to purchase gold and compromised on their purchase due to whooping price of gold.
This year, gold traders sold gold worth nearly Rs 7 billion during Tihar festivals. Sales during Tihar provided them a much-needed respite in the business as the increase in price had pushed down the demand for precious metals in the domestic market. The main reason for increased gold sales was Dhanteras, a day during the Tihar festivals which is considered an auspicious day to buy gold.
“Festive season and wedding season gave us some hope as we did some business, but it was low compared to previous year. After festive season we were waiting for wedding season. Compared to the previous year, there was only 50% of business in wedding season. We are hoping that upcoming wedding season will be better,” said Bajracharya.