Nepal | August 15, 2020

Independence Day 2020

Gold price reaches Rs 70,000 per tola

Himalayan News Service
Share Now:

Kathmandu, August 8

Gold price, which has been rising since the last few weeks, set a new record of Rs 70,000 per tola in the domestic market today.

The price of the precious yellow metal surged by Rs 500 per tola today to reach Rs 70,000 per tola for the first time in Nepal.

As per the statistics maintained by the Federation of Nepal Gold and Silver Dealers’ Association, gold price has increased by Rs 4,500 a tola in the last three weeks.

Mohan Kumar Sunar, president of the federation, said the surge in gold price in the domestic market was in line with the rise in the price of the precious metal in the global market. “Primarily, the trade dispute between the United States and China, along with increased tariffs by the US on Chinese goods, have resulted in investors flocking to gold, which is considered a safe investment,” said Sunar, adding that gold price is expected to rise further.

Along with this, gold dealers said the decision of the government to raise import tax on gold had made gold dearer in the domestic market.

The government, through the budget for fiscal 2019-20, had increased the import duty on gold by Rs 800 per 10 grams. Consequently, gold importers now have to pay import tax worth Rs 5,000 per 10 grams, against Rs 4,200 per 10 grams earlier.

Meanwhile, dealers have said that sale of gold jewellery in the domestic market has gone down by more than 80 per cent due to the price hike. They said the daily demand of raw gold in the domestic market had gone down to less than 10 kg, though the market normally demanded almost 30 kg of raw gold daily.

Sunar said jewellers were not being able to run their business as the number of customers selling their gold jewellery had far surpassed those buying the yellow metal. Owing to the fall in demand of raw gold in the market, banks have also stopped importing yellow metal temporarily. Nepal Bankers’ Association claimed that commercial banks had almost 560 kg gold in stock.

As traders are not allowed to import raw gold on their own, 16 commercial banks have been importing raw gold and selling it to traders. Since Nepal Rastra Bank has set the import quota of gold at 20 kg per day, these commercial banks import gold on turn-wise basis.

“Banks will resume import of gold only after clearing the stock they have,” said Anil Sharma, executive director of NBA.

A version of this article appears in print on August 09, 2019 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Leipzig stun Atletico to reach Champions League last four

LISBON: RB Leipzig stunned Atletico Madrid, with a 2-1 victory in their Champions League quarter-final on Thursday, to reach the competition's last four for the first time in their club's short history. With two minutes of normal time remaining, United States midfielder Tyler Adams snatched Read More...

Govt urged to rescue Nepalis stranded abroad

Kathmandu, August 13 The National Human Rights Commission has recommended that the Government of Nepal rescue Nepalis stranded in foreign countries on the basis of their financial condition and risk analysis. ‘Report on Human Rights Situation of Nepali Migrant Workers during the COVID-19 Pan Read More...

Mexico, coronavirus outbreak;

Mexico, with over 500,000 coronavirus cases, to help with vaccine

MEXICO CITY: Mexico, having hit over half a million official coronavirus cases and 55,000 deaths as the pandemic rages across Latin America, will help produce a vaccine that could be distributed in the region next year, authorities said on Thursday. President Andres Manuel Lopez Obrador has s Read More...

The office of the prime minister and council of ministers, OPMCM

Compensation announced for victims’ families in Soti incident

Kathmandu, August 13 The government has decided to provide Rs 1 million each to the families of victims in the Soti incident. Meeting of the Council of Ministers decided to provide monetary relief to the families of the victims of the incident that occurred on May 23 at Soti, Chaurjahari-8, in Read More...

Peru, coronavirus

Peru surpasses 500,000 coronavirus cases, marks highest fatality rate in LatAm

LIMA: Peru surpassed half a million coronavirus cases and has the highest fatality rate in Latin America, according to health ministry data on Thursday, as the government struggles to contain a recent surge of infections. There have been 507,996 confirmed cases and 25,648 related deaths, vice Read More...

Jobs of nearly 50,000 workers associated with party venues, catering services at risk

KATHMANDU, AUGUST 13 The monthly salary of Rs 15,000 was barely enough for Keshav Kunwar, a resident of Bhaktapur, to make ends meet. But when the government announced a nationwide lockown in March to control the spread of coronavirus, the party palace he was working for also shuttered, thereby c Read More...

No religious fair at Gokarneshwor temple

Kathmandu, August 13 A religious fair that takes place each year at Gokarneshwor Mahadev Temple, on the outskirts of Kathmandu on the new-moon-day in the month of Bhadra of the lunar calendar has been cancelled this year due to the COVID crisis. This year the event falls on August 19. On this Read More...

Govt directed to submit report on management of old vehicles

Kathmandu, August 13 The Supreme Court has issued an order to the Government of Nepal, directing it to submit a report, with proposal and action plan, on the management of dysfunctional vehicles and materials dumped on the premises of government offices. In response to a writ petition filed by Read More...