KATHMANDU, March 5: The price of gold has set a new record of Rs 80,500 per tola (11.664 grams) in the domestic market on Wednesday.
According to the officials of the Federation of Nepal Gold and Silver Dealer's Association (FENEGOSIDA), the yellow metal was traded at Rs 78,300 on Tuesday. The price of gold went up by Rs 2,200 in a single day.
Mohan Kumar Sunar, president of FENEGOSIDA, said that the outbreak of coronavirus is the main reason behind the increase in the price of gold.
“Investors are attracted to gold due to the outbreak of coronavirus. Investors in the United States and Europe are investing in gold. They consider investing in gold as a safe haven which has caused the price of gold to go up,” said Sunar.
The price of gold has been rising steadily in the domestic market since July, 2019, with occasional drops. Gold dealers say that the increasing price has affected their business in this fiscal year. Though festive seasons and wedding seasons had given them some ray of hope, business was low throughout the year.
Previously, the price of gold has increased due to tensions between the US and Iran, and the US-China trade dispute but now coronavirus has been the main reason behind the price hike of gold. Before this, the price of gold was recorded high on February 24 at Rs 80,300.
“Traders are worrying about their business as the price hike of gold has prevented customers from purchasing gold. I have received a lot of complaints from traders that they are in loss and their business even could not pay their bills off. In this situation, we cannot even pay our taxes,” said Sunar.
Gold dealers say that the increasing price of gold has limited customers purchase on gold. According to the dealers, people have shifted to buying artificial jewelry than real gold jewelry as artificial jewelry is cheaper, easily available and looks like real gold.
“Gold dealers have not received any new orders and their businesses have been limited in making old orders and selling readymade jewelry,” said Sunar.