Kathmandu, June 1

Gold price increased in the trading week between May 26 and 31 after the government announced customs duty on the import of precious yellow metal was going up.

During the budget announcement on Wednesday, Finance Minister Yubaraj Khatiwada said that customs duty on gold import would be hiked by Rs 800 per 10 grams next fiscal. This, in turn, raised the price of gold in the domestic market, as per Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA).

As per the association, gold was traded at Rs 59,700 per tola in the local market on Sunday, while on Monday its price reached Rs 59,600 a tola, down Rs 100 per tola. The price remained constant on Tuesday, but fell by Rs 100 a tola to Rs 59,500 per tola on Wednesday. Its price was unchanged on Thursday. But on Friday, price of precious yellow metal soared by Rs 1,500 a tola to close the week’s trading at Rs 61,000 per tola.

Gold price went up by Rs 1,300 a tola in the review period compared to preceding week’s closing rate of Rs 59,700 per tola.

Meanwhile, silver price dropped in the review period. As stated by FeNeGoSiDA, silver was traded at Rs 710 a tola on Sunday and remained constant till Tuesday. However, silver price fell by Rs 10 per tola to be priced at Rs 700 a tola on Wednesday. Its price was unchanged on Thursday. However, on Friday, the price of grey metal went up by five rupees per tola to close the week at Rs 705 a tola. In the previous week, silver had closed at Rs 710 per tola.

Meanwhile, gold premiums in top consumer China rose this week as investors bought the metal as a safe-haven due to rising trade tensions with the United States, while bullion demand moderated in India as local prices jumped to two-week highs, as per Reuters.

Gold price went up in the international market as well, as the United States increased customs tax on import from Mexico by five per cent.