Kathmandu, April 18:

The price of gold reached a new height of Rs 14,500 per 10 gm in the domestic market. This is an increment of Rs 950 in the last 17 days. The price of the precious yellow metal was recorded at Rs 13,550 on the first day of April.

Weak performance by US dollar in comparison to yen and euro, nuclear crisis in Iran and increment in the price of petroleum products in the international market has propelled the increment, said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association.

“Chinese experts had predicted that the price of gold would cross the $400 mark by the end of 2004 and $500 mark by the end of 2005, both of which have come true. The Chinese have also predicted that the price of gold would cross the mark of $600 by 2007, but it had already reached that mark, which hints at the fact that the price of the precious yellow metal would further increase,” said Shakya.

Despite the strong performance of stock market, people are reluctant to invest in stocks and are finding investment in gold more profitable in Nepal, Shakya said.

The bullion market in Nepal has been severely affected by the ongoing general strike and even after the opening of the market, the demand for gold would not increase, Shakya viewed. Though it is a wedding season, the purchasing capacity of Nepalis would be a restriction on purchasing of gold, Shakya said. The gold price had crossed the Rs 13,000 mark twice in March. On the first closing day of the bullion market on March 3, the price of hallmark gold was Rs 13,160. Though the price of the precious yellow metal declined to Rs 12,900 on March 10.