KATHMANDU, July 26: Gold price hit a fresh record of Rs 96,300 per tola (11.664 grams) with the soaring price in the international market as a worsening US-China row added to fears over the hit to a global economy already reeling through the coronavirus pandemic.
The Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), which fixes the bullion price in the local market, raised the price of the yellow metal by Rs 500 per tola on Sunday to set a new record. In the past five months, gold has been expensive by Rs 17,500 per tola. The gold price on February 24, a month before Nepal imposed nationwide lockdown, was recorded at Rs 78,800 per tola.
As per the Reuters’ report, the soaring price of gold is attributed to the investors resorting to the precious metal as a safe landing following the dwindling global economy by the impact of coronavirus and the deepening tension between two giant economies—the US and China.
According to the international media, the price of the precious metal rose by 5% in the last week alone, the largest weekly gain in gold price since 2011. The gold price hovers around US $ 1,906 per ounce in the international market.
In Nepal, the gold price is further affected by the government’s decision to increase the duty through the budget 2020/21 apart from the ongoing crisis triggered by the pandemic. The government has increased the customs duty on gold import by Rs 2,000 to Rs 8,500 per 10 grams and silver by Rs 1,000 per kilogram to Rs 8,500.
The gold traders said that the soaring price along with the threat of coronavirus has led to a heavy fall in demand for the precious metal. According to them, the bullion market has not been revived yet, as people are reluctant to carry out wedding and festival celebrations even after the government lifted the lockdown last Tuesday.
Along with gold, silver has also set a record high price of Rs 1,155 per tola in Nepali market.