Gold price increased by US $25 per troy ounce in the international market overnight with the yellow metal trading at US $ 17,048 per troy ounce on the day. [break]
“Dollar has weakened in the international market which has resulted in the increase in gold price,” said Tej Ratna Shakya, the president of Nepal Gold and Silver Dealers Association.
Change in the strength of US dollar usually has opposite effect on international gold price. The greenback, which was valued at 1.33 per Euro on Wednesday, was weakened by 0.015 per Euro overnight.
“This change in exchange rate was likely to increase the price of gold in the market but the rise has been higher than expected. Probably investors do not trust dollar yet as the rate is fluctuating highly at the moment,” explained Shakya.
The rising price of gold is adversely affecting the market of gold in Nepal in the peak season.
Customers purchase gold in huge quantities during this time of the year due to the wedding season. “Since price has gone up people are purchasing less,” added Shakya.
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