Gold price at record high after US strike
Kathmandu, January 3
The price of gold in the domestic market hit a new high today on fuel war fears.
As per the price list of Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded in the domestic market today at Rs 74,500 per tola, a steep rise of Rs 1,000 a tola overnight.
The tensions between Iran and the US heightened today after the Iranian Quds Force chief Major-General Qassem Soleimani and Iraqi commander Abu Mahdi al-Muhandis were killed in a US airstrike at the Baghdad International Airport in the morning. This prompted international investors to flock towards gold, which is considered a safe haven investment at times of turmoil. Hence, the gold price went up in the domestic market, FeNeGoSiDA stated.
The gold prices went up twice during this trading week between December 29 and January 3.
The federation has stated that the gold price was also hit by the expensive dollar — Rs 114.50 today — in the domestic market.
The earlier peak for the bullion — at Rs 73,500 per tola — was first recorded on August 26 last year. Even as its price had bobbed thereafter, the precious yellow metal had reached this level a number of times, most recently on Thursday.
The soaring price of the bullion has dented its demand in the local market, with jewellers complaining of muted business even during the festive and wedding seasons.
As per FeNeGoSiDA, per day gold trade has fallen to 10 kg from 25 kg in this period last year. Amidst this, the import of gold and silver has declined significantly in the current fiscal year compared to the previous fiscal 2018-19.
According to the Department of Customs, a total of 1,250 kg of gold was imported in the first five months of the current fiscal, a staggering 61.78 per cent drop compared to the import of 3,271 kg of the precious yellow metal in the corresponding period of last fiscal.
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