Gold hits new peak of Rs 78,800 a tola
Kathmandu, February 23
The price of gold has again set a new historic record of Rs 78,800 per tola in the domestic market. It was only on Friday that the price of the bullion had set a new record of Rs 78,100 a tola.
Compared to Friday, gold price has increased by Rs 700 per tola in just two days. The Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) has pointed out the worsening situation of the coronavirus in China for the increase in the price of the yellow metal in the domestic market.
The virus is not limited to China only and has been currently spreading across the world that has compelled investors to invest in gold, which is considered a safe-haven investment in times of crises, hence, the price is unlikely to drop till the situation settles down, FeNeGoSiDA stated.
Meanwhile, Reuters has stated that the United States stocks sold off and the Nasdaq had its worst daily percentage decline in about three weeks on Friday as the spike in new coronavirus cases and data showing a stall in US business activity in February fuelled investors’ fears about economic growth. The rise in coronavirus cases sent investors scrambling for safe havens such as gold and government bonds.
Prior to this, gold price hit new historic records due to the trade tensions between the United States and China and tensions between the US and Iran after the US killed an Iranian commander.
Due to these reasons, the demand for gold increased in the global market affecting its price. Due to the price hike in gold jewellers in the domestic market have remained pretty idle even during the wedding season.