Kathmandu, February 9
Gold price surged to over a year high today to be traded at Rs 54,000 per tola.
The price of the precious yellow metal gained Rs 1,000 a tola in a single day today in the domestic market as the prices of precious metals have rallied in the international market. The prices of the precious metals in the domestic market are governed by the rates set in the international market.
Similarly, silver price also recorded about an eight-and-a-half month high as the price of the white metal increased by Rs 15 per tola to be traded at Rs 730 a tola.
The last time the precious yellow metal had traded at a similar level was on February 2 of last year, when it was priced at Rs 54,000 per tola. Silver, on the other hand, was priced at Rs 730 per tola on May 27 of last year.
Sliding stock markets and worries over global economic growth have prompted investors to seek safety, according to Reuters. “Stock indexes worldwide tumbled on persisting fears of a global economic slowdown, while benchmark 10-year US Treasury yields hit their lowest in a year on demand for assets deemed less risky, such as bullion.”
Fears that the global economy could slow sharply, or even tip into recession, and worries about some banks have battered share markets in recent days, it was reported today.
“Gold, which is now up nearly 13 per cent this year, reversing last year’s 10.4 per cent loss, has benefited as some weak economic data recently prompted financial markets to scale back expectations for US interest rate rises this year,” as per Reuters.
Precious metals are being imported in the country particularly for making jewellery. Daily demand of gold in the country hovers at around 15 kg to 20 kg, according to the Federation of Nepal Gold and Silver Dealers’ Association (FeNEGOSIDA).