Gold price up by Rs 1,300 per tola

Published On: November 9, 2016 09:30 PM NPT By: Republica  | @RepublicaNepal

Nepse down 28 points
KATHMANDU, Nov 9: Gold price increased by Rs 1,300 per tola (11.664 grams) to Rs 58,200 per tola on Wednesday.

According to Federation of Nepali Gold and Silver Dealers Associations, gold price increased in Nepal due to price movement in the international market. 

The yellow metal was traded at Rs 58,200 per on Wednesday, up from Tuesday's price of Rs 56,900 per tola. 

Gold traders say that the price in the domestic market increased mainly due to upward movement in price of the yellow metal in the international market. The price of gold in the international market increased by US $35.1 per ounce to $1,284 on Wednesday. Analysts say that the market reacted to the election of Donald Trump as the 45th president of the US.

Trump's victory shocked investors and many switched to gold, which is regarded as a safe haven, after major stocks fell across the world. 

“Price of gold in the domestic market increased, taking cue from the global market,” Mani Ratna Shakya, president of the federation, told Republica. "It's a natural phenomenon.

Investors often shift to gold when they feel insecure in other means of investments, including stock,” he added.

Shakya also attributed appreciation of US dollar vis-à-vis Nepali currency as the other reason behind sharp rise in the price of gold on Wednesday. US dollar was valued Rs 107.25 on Wednesday compared to Rs 107 on Tuesday.

Meanwhile, Nepal Stock Exchange (Nepse) shed 27.63 points to end the trading at 1696.86 points on Wednesday.

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