Breaking all trading records, gold soared by 1,000 rupees in a single day and reached Rs53,400 (US $723) per 11.664 grams (tola), a traditional South Asian measurement of gold trading.
Gold is a popular metal in Nepal, mostly used in marriage ceremonies, feasts, festivals and other social occasions. Women use the precious metal as personal ornamentation in their ears, nose, on their fingers and other parts of the body.
Price of silver also reached a record height of Rs.1,265 (US $18) per tola.
According to Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (NEGOSIDA), the price of gold has set a new record in the domestic market because of its continued price hike in the international market.
Shakya said that the price of gold has been going up in the international market because of the economic crisis in Europe and America.
Following the economic crisis, foreign investors have been motivated to invest in gold as a secure sector of investment. “This has pushed the price of gold towards an increment,” Shakya said.
The devaluation of the U.S. dollar and the rise in the price of crude oil have also led to an increment in the price of gold in the international market.
Considering such an upward trend in the international market, the price of gold is like to increase further, said Shakya.
In the international market, the price of gold stood at US$1,658 per ounce on Friday, while its price was US$1629 per ounce on Sunday.
The escalating price in the recent weeks has led to a sharp decline in the demand for gold in the domestic market by 25 percent, according to NEGOSIDA.
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