Gold price rises by Rs2,900 per tola in a month

- Post Report, Kathmandu

Jan 13, 2017-

Gold price has jumped by Rs2,900 per tola (11.66 gm) in the domestic market in the past month, according to Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida).

The perilous yellow metal traded at Rs54,600 on Thursday, up from Rs51,700 per tola in mid-December, 2016. “This increase is in line with the international market price,” said Mani Ratna Shakya, past president of Fenegosida.

According to Indian media reports, gold rose 0.75 percent to $1,200 an ounce and silver 0.87 percent to $16.84 an ounce globally on Thursday. 

Forex and market news and analysis website DailyFx states, “Gold prices continued to rise and crude oil prices followed as a press conference with Donald Trump poured cold water on Fed rate hike speculation.”

Demonetisation of Indian banknotes of 500 and 1,000 denominations too contributed to the rise in gold price. Due to currency shortage, Nepali people residing in areas bordering India, who frequent Indian markets to buy daily essentials, are making payments in gold terms to Indian traders, according to Nepali gold traders. 

“There is a huge demand for gold in India and Indian traders are happy to accept gold in exchange of goods,” Shakya said.

Traders expect a further increase in gold prices as the wedding season, which fuels demand, begins from mid-January. “People have already started making preparations,” Shakya said. 

Gold demand, which currently stands at 35-40 kg per day, had reached as 

high as 50kg in the period between mid-November and mid-December.

Published: 13-01-2017 09:47

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