Gold Enjoyed a Lavish Rally in the Pandemic; Is This the End of It?

Precious metals have enjoyed extended upward rallies because of the impact created by Covid-19. While all economic activities were brought to a halt, investors flocked to precious metals, as such assets are considered safer than wealth stored in the currency bills of a nation. The snowball effect thus created drove the price of gold and silver to record highs in the international market. Things back home in Nepal obviously followed suit.

However, now that pandemic fears have subsided and the government of Nepal is vaccinating the citizens, it seems that the bull run on precious metals has exhausted itself. The price of gold lost Rs, 1,000 per tola in a single day today. Fine gold is now trading at Rs. 88,200 per tola while Tejabi gold is being traded at Rs. 87,750 per tola. At its height during the pandemic, gold was trading at above Rs. 1,00,000 per tola.

Silver is often overshadowed by the hype on gold. However, this white lustrous metal is as good an investment vehicle as gold, if not more. Silver also lost Rs. 30 per tola today and is trading at Rs. 1,305 per tola.