As the conflict between United States and Iran intensifies, the prices of yellow metal rose considerably in the domestic market during this trading week.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold price was fixed at Rs 73,300 per tola on Sunday and it remained constant on Monday.
After the Iran-US conflict, investors poured to invest in gold, which is considered a safe haven investment, that pushed up the price of gold in the international market and subsequently in the domestic market too. It has to be noted that gold price in the domestic market is set as per its price in the global market. According to Association, gold price also rose in the domestic market due to the expensive US dollar.
Gold price went up by Rs 1,200 per tola in the review period compared to the closing rate of Rs 73,300 a tola in the previous week.
The price of the precious yellow metal increased by 1,000 per tola on a single day on Sunday and reached Rs.75, 500 per tola (11.66 grams).
The gold price had climbed to Rs. 74,500 per tola on Friday.
With the significant increment in the gold price for the last couple of days, gold transaction has been zero in the market.
The demand of gold is reportedly almost nil in the bullion market for the last two days when its prices increased significantly. So, we, the traders, are panicked after failing to receive fresh demand of gold.
He said that the gold traders would not be in position to purchase jewelry from the consumers in the existing situation, when the sale of gold was nil.
Earlier, the trade war between America and China had led to the rise of the gold price in the international market. The price of gold had reached Rs. 73,500 per tola on September 4, 2019, the highest rate of 2019.
The price increased to 1,553 USD per ounce in the international market today, he said, adding that present fluctuation of gold price in the international market showed that its price would further increase in the local market.
“Market observers said that the price of gold will cross USD 1,600 per ounce in the international market. If the price of gold crosses USD 1,600, the price of gold will reach around Rs. 78,000 per tola in the local market,” he said.
He said that devaluation of Nepali currency against the US dollar had also contributed to the high gold price in the local market.