The price of gold set yet another new record in the domestic bullion market on Wednesday.

The price of a tola of gold reached Rs. 91100, the highest price of the yellow metal ever recorded in Nepal. The price of a tola gold was 90,600 on Tuesday.

The lockdown and the price significant increase in the gold price in the international market have contributed to the increase in its price in the local market for the last couples of weeks.

The price of gold had reached Rs. 76,500 per tola on January 3, 2020 that was also a record high price in Nepali gold market.

The demand for gold has increased in the international market as the investors are buying gold as safe and secure asset, and it also contributed to the price rise.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold price was Rs 87,400 per tola on Sunday.

After the lockdown was eased the bullion market had resumed from Sunday and on Monday price of the yellow metal went up by Rs 100 a tola to settle at Rs 87,500 per tola. It again increased the next day by Rs 200 per tola to Rs 87,700 a tola. On Wednesday, gold price reached Rs 88,600 a tola going up by Rs 900 per tola.

Price of the bullion continued with its rising trend on Thursday too and reached Rs 89,600 a tola ascending by Rs 1,000 per tola.

However, it remained constant on Friday to close the market at Rs 89,600 a tola.

“Although threats due to the coronavirus are subsiding in some countries, the virus is still creating havoc in many other nations. Due to this, investors are turning towards gold, hence its price has soared in international market and subsequently in Nepal,” as per FeNeGoSiDA.

The federation further stated that the gold price is likely to further go up as the government has increased customs tax on gold import by Rs 2,000 per 10 grams.

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In top consumer China, discounts eased to $5 to $10 an ounce versus benchmark prices from last week’s $11 to $14 discounts, Reuters reported.