Kathmandu, June 22

Gold price climbed to an alltime high of Rs 65,000 per tola in the domestic market in the trading week between June 16 and 21. According to the Federation of Nepal Gold and Silver Dealers’ Associations (FeNeGoSiDA) the ongoing trade war between the United States and China has increased attraction towards gold, which has raised the demand of gold in the international market. Thus, the gold price has been rising.

On Sunday, gold was traded at Rs 63,000 per tola. On Monday, the price of the bullion increased by Rs 100 a tola to be priced at Rs 63,100 per tola.

However, the next day the price of the yellow metal declined by Rs 100 per tola to settle at Rs 63,000 a tola and remained constant on Wednesday. On Thursday, though, gold price went up by Rs 1,000 per tola to be traded at Rs 64,000 a tola. Bullion price further surged by Rs 1,000 a tola on Friday to close the week’s trading at Rs 65,000 per tola.

Gold price went up by Rs 2,000 a tola in the review period compared to the preceding week’s closing rate of Rs 63,000 per tola.

The current gold price is the highest when compared to the price of the yellow metal in the last 10 years, as per Mani Ratna Shakya, immediate past president of FeNeGoSiDA. “Prior to this, gold price had reached a peak in 2009 when it was priced at Rs 63,300 a tola.

After that the price had even declined to Rs 47,800 per tola in 2015,” he said, adding, “However, gold price again went up to Rs 63,300 a tola and in the past week it has soared.”

Shakya further said that the increased price has affected traders as well. According to him, the number of customers visiting jewellery shops to sell their gold jewellery is more than the number of customers coming to buy gold. “Although this is not the season when customers usually sell their gold they are cashing in now on the high prices,” he added.

Meanwhile, Shakya said that gold price is likely to rise further in the next week. “It is uncertain to predict the gold price, however, looking at the current situation the price is likely to go up next week,” he added. As per him, the uncertainty prevailing regarding a US war with Iran and the trade war with China are the reasons behind the uncertainty in gold price.

According to Reuters, gold price climbed to a near six-year high on Friday after the US Federal Reserve indicated earlier this week that it could cut interest rates as early as July, prompting a sharp fall in the dollar and US Treasury yields.

Prices also found support from worries about a potential US military strike against Iran and a global trade conflict.

Meanwhile, silver price also soared in the review week. As stated by FeNeGoSiDA, silver was traded at Rs 720 a tola on Sunday and remained constant till Wednesday. However, on Thursday the price of the grey metal went up by Rs 10 per tola to be traded at Rs 730 a tola.

Silver price again increased by Rs 10 per tola on Friday to close the week’s trading at Rs 740 a tola.

Silver price went up by Rs 20 a tola in the review period compared to the previous week’s closing rate of Rs 720 per tola.