Gold prices surge by Rs 29,000 per tola over the past year

Published On: April 14, 2024 09:30 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 14: Gold has become expensive by Rs 29,000 per tola in the domestic market of Nepal in the past one year, mainly due to the volatility seen in gold prices in the international market caused by instability in the foreign currency market along with the rising tension among a number of countries across the globe.

According to the Federation of Nepalese Gold and Silver Dealers’ Association (FENEGOSIDA), the price of the precious yellow metal hit a record high of Rs 139,000 per tola (11.6638 grams) in the domestic market on the last day of the Nepali year 2080. On Friday alone, the price of gold increased by Rs 2,400 per tola.

On April 14, 2023, the first day of BS 2080, gold was traded at Rs 110,000 per tola in the local market. It hovered up to Rs 12,500 per tola as of mid-September. The price then escalated to Rs 117,700 per tola in mid-February. However, the price of the yellow metal skyrocketed in the last two months.

While the domestic market is witnessing an upward trend in prices, the international market also plays a significant role. According to the latest update on Friday, the current rate of gold stands at $2,393 per ounce. Last year in June, the price of gold jumped to $2,408 per ounce. Internationally, the price of silver remains constant at $28.86 per ounce.

Tej Ratna Shakya, a gold trader and a former president of the FENEGOSIDA, said the price of gold has increased in the local market due to an increase in its price in the international market. According to him, soaring prices of the precious yellow metal impacted domestic demand in the bullion market.

The Economic Times, an Indian media, reported that gold prices on Friday climbed to INR 72,967 per 10 gm, rising by 1.6 percent compared to the previous day. “This daily surge in prices has never been witnessed in the last 50 years,” reads the Economic Times, adding that gold prices have shot up by 10.75 percent in a month.

According to international media, gold prices experienced an uptick due to geopolitical uncertainties, increased central bank purchases, and heightened safe-haven demand. “Apart from these, the soaring price of the precious yellow metal has been fueled by a convergence of factors, including firmness in dollar index and bond yields, supported by central banks buying and anticipation of the US Federal Reserve’s interest rate cut.”

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