KATHMANDU, Aug 23: The price of the gold rose by Rs 470 per ten grams and hit a new high of Rs 58,600 per tola (11.644 gram) in the domestic market Thursday after its price in the international market rose to its highest level in three months amid news of US federal reserve launching another round of bond buying.
The precious metal was selling at record high of Rs 57,700 per tola in the domestic market from Sunday, when its international price hovered around US $1,623 per troy ounce.
But as gold rallied by $15 per troy ounce in the international market, dealers on Wednesday had jacked up its rate by Rs 350 per tola.
They further raised the price by Rs 550 per tola on Thursday as the gold became expensive by $20 per troy ounce in the international bullion market and settled at $1,667 per troy ounce on the day.
Nepal Gold and Silver Dealers´ Association (Negosida), which fixes the price of gold in the local market, attributed the rise to upward swing of international prices.
“The price of yellow metal is becoming expensive in the international market each day because people are preferring to hold it to secure their investment,” Biyesh Ratna Shakya, Negosida secretary told Republica.
Though dealers said the rise in prices has not affected their daily sales, which has increased to 20 kgs a day from 15 kgs with the festive season of Teej kicking off. But if price continued to soar, they fear the situation might change.
"We are pretty anxious over the latest upward movement of gold. Rise in prices can dampen prospect of festive sales," said Shakya. He even added that dealers believe situation will turn unfavorable for them soon as experts have been informing them that the yellow metal prices could jump up to Rs 60,000 per tola in the next few weeks.
Along with gold, the price of silver too went up in the international market on the day. This made silver expensive by Rs 29 per tola on Thursday, compared to a day ago. On Thursday, silver was traded at Rs 1,094 per tola.