Gold price rises in Nepal as COVID-19 fear grips market

Kathmandu, June 13

The price of gold in the domestic market has been rising significantly even during the lockdown as investors in international market are investing in the bullion, which is considered a safe-haven investment, due to the growing threat of COVID-19. It is to be noted that the price of precious metals in Nepal is determined based on international prices.

Gold price has surged during the trading week between June 7 and 12.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold price was Rs 87,400 per tola on Sunday.

After the lockdown was eased the bullion market had resumed from Sunday and on Monday price of the yellow metal went up by Rs 100 a tola to settle at Rs 87,500 per tola. It again increased the next day by Rs 200 per tola to Rs 87,700 a tola. On Wednesday, gold price reached Rs 88,600 a tola going up by Rs 900 per tola.

Price of the bullion continued with its rising trend on Thursday too and reached Rs 89,600 a tola ascending by Rs 1,000 per tola.

However, it remained constant on Friday to close the market at Rs 89,600 a tola.

“Although threats due to the coronavirus are subsiding in some countries, the virus is still creating havoc in many other nations. Due to this, investors are turning towards gold, hence its price has soared in international market and subsequently in Nepal,” as per FeNeGoSiDA.

The federation further stated that the gold price is likely to further go up as the government has increased customs tax on gold import by Rs 2,000 per 10 grams.

According to Reuters, gold prices gained on Friday as investors bought the safe-haven metal as fears of a fresh wave of coronavirus cases added to the gloomy economic outlook from the US Federal Reserve. Meanwhile, physical gold demand in India was lacklustre this week even as shops reopened, while Bangladesh announced plans to withdraw import taxes to clamp down on bullion smuggling.

In top consumer China, discounts eased to $5 to $10 an ounce versus benchmark prices from last week’s $11 to $14 discounts, Reuters reported.

Meanwhile, as per FeNe- GoSiDA, silver price was Rs 925 per tola on Sunday and reached Rs 930 a tola on Monday going up by five rupees per tola. On Tuesday, silver price remain steady, however on Wednesday it reached Rs 935 a tola, going up by five rupees per tola.

Price of the grey metal reached Rs 950 a tola the next day rising by Rs 15 per tola. However, on Friday it declined by Rs 15 a tola to close the trading week at Rs 935 per tola.

Although the market has reopened FeNeGoSiDA has stated that besides a few small shops in the market other shops are yet to open.

A version of this article appears in e-paper on June 14, 2020, of The Himalayan Times.