Kathmandu, February 18:

Gold is likely to rise up to Rs 30,000 per tola (11.664 gram), hurting the domestic trade. Gold traders are a worried lot as the price is gaining every day, pinching their trade in the wedding season.

“Today, it broke all records and was traded at Rs 29,160 per tola in the domestic market,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (NEGOSIDA). Interestingly, silver also jumped to Rs 414 per tola today.

“The weak dollar against the Japanese yen and Euro and poorer performance of global share markets have pushed up the gold price in the international market apart from weak rupee against the dollar,” he said adding that the price of gold in the international market also is looking to go up to $1000 per ounce. Today, it was aroung $965 per ounce.

“Speculative market players have also contributed to the hike in gold price,” Shakya said. Gold is unique because it is both a commodity and a monetary asset and thus a safe haven for investors. “Gold is seen as a hedge against inflation; while its real value can vary in the short term, its purchasing power has remained stable over centuries,” said Shakya.

Today, very little gold was traded, at Rs 25,000 per 10 gram while silver was traded at Rs 355 per 10 gram.

According to World Gold Council’s Gold Demand Trends, identifiable gold demand in tonnage terms rose by four per cent on previous year levels to 3,659 tonnes. This year as a whole, the gold price averaged $872, up by 25 per cent from $695 in 2007.