Nepal | January 23, 2020

Record-setting week for gold as it hits Rs 70,000 per tola

Himalayan News Service

Kathmandu, August 10

It was a record-setting week for gold between August 4 and 9, with bullion price reaching all-time high levels.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), the market opened on Sunday with bullion price fixed at Rs 66,300 a tola — a new record in the country’s history.

The gold price breached its own record for the next four consecutive days — increasing by a whopping Rs 1,500 per tola overnight to be traded at Rs 67,800 a tola on Monday; up Rs 200 per tola to be traded at Rs 68,000 a tola on Tuesday; surging by Rs 1,500 per tola to Rs 69,500 a tola on Wednesday and again rising by Rs 500 per tola to a new peak of Rs 70,000 a tola on Thursday.

On Friday, however, the price of the precious yellow metal remained constant.

Gold price went up by a staggering Rs 4,200 per tola in the review period compared to the previous week’s closing rate of Rs 65,800 a tola.

Meanwhile, silver price was fixed at Rs 775 per tola on Sunday. On Monday, its price went up by Rs 20 a tola to Rs 795 per tola and was unchanged on Tuesday. On Wednesday, the price of the grey metal increased by Rs 15 a tola to be traded at Rs 810 per tola.

On Thursday, silver price again went up by Rs 15 a tola to Rs 825 per tola and remained constant on Friday.

Silver price went up by Rs 55 a tola in the review period compared to the previous week’s closing rate of Rs 770 per tola. While the price of the grey metal had not reached this level this year, Mani Ratna Shakya, former president of FeNe- GoSiDA, informed that silver price is lower than the all-time high levels reached some six years back when it was traded at Rs 1,350 a tola.

According to FeNeGoSiDA, the ongoing trade war between the United States and China, the conflict between the US and Iran as well as the central banks across the world stocking up on gold are some of the major reasons behind the increasing price of bullion.

The widening gap between the United States and North Korea, along with the Kashmir issue added to the appeal of gold, which is considered a safe-haven investment.

The price of precious metals in the domestic market is governed by its price in the international market.

Meanwhile, Reuters reported that gold was on course for its biggest weekly gain in more than three years on Friday as it held above $1,500 an ounce on heightened trade tensions between Washington and Beijing.

Moreover, the Federal Reserve cut its benchmark interest rate by 25 basis points for the first time since 2008 last week. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. The dollar was headed for its first weekly decline in four, adding to gold’s appeal, according to Reuters.

A version of this article appears in print on August 11, 2019 of The Himalayan Times.

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