Gold was traded at Rs 26,500 per 10 grams or Rs 30,910 per tola (11.66 gram) on Wednesday, breaking the record set on Tuesday when gold was traded at RS 25,980 per 10 gram.
Price of gold hit a record high in international market as well. The price of precious yellow metal touched $1,095.40 per troy ounce on Wednesday, leapfrogging the previous high of $1,068.
Traders attributed the rise in gold prices to ever weakening greenback against its rival currencies and decreasing value of Indian currency against US dollar.
“Due to skyrocketing prices, transaction of gold has dropped to almost one-third as compared to the sales figure of a couple of months back. We expect the sales to suffer further setback in the coming wedding season as the gold price is becoming unaffordable to general customers,” Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (NEGOSIDA), told myrepublica.com on Wednesday. Shakya said daily sales of gold have dropped to 6 kg a day from 20 kg over the couple of months.
Sales of gold go up during major festivals like Dashain and Tihar and during wedding seasons. However, gold dealers saw an unprecedented slackness in gold transaction during the major festivals as customers chose not to invest in gold due to ever increasing prices.
Price of silver also increased by Rs 13 per 10 gram to reach Rs 437 per 10 gram on Wednesday. Silver price set a new record of Rs 443 per 10 grams in domestic market on October 14.
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