Gold price rises sharply to Rs51,600 per tola
Aug 22, 2015
Gold prices rose sharply in the domestic market, recording a single day gain of Rs 1,400 per tola on Friday.
The surge has been attributed to surging demand for jewellery and rising prices in the international markets.
The precious yellow metal was traded at Rs51,600 per tola on Friday against Rs 50,200 on Thursday. This is the highest single-day gain in the last two months. The gold was traded at Rs 51,800 per tola on June 23, before the price started to fall.
The Federation of Nepal Gold and Silver Dealers Association (Fenegosida) citing rising prices in the international market and the strengthening of the US dollar. Fenegosida has set the new rate based on $1,165.20 per ounce in Singapore on Friday. Silver price also surged by Rs10 per tola to Rs715.
According to the international media, the prices rose mainly due to rising investor confidence with signs the US Federal Reserve may delay the interest rate hike as the inflation remained low and sell-off in emerging markets spreads.
“Gold prices went up by $27 per ounce in a day with increased demand from the investors, so the prices rose in the domestic market too,” said Mani Ratna Shakya, president of Fenegosida. Besides, the depreciating of the Indian rupee against the dollar also affected the price, making imports costlier, he said.
The Nepali rupee has been pegged with the Indian currency. The Nepal Rastra Bank fixed the exchange rate of the dollar at Rs 105.40 on Friday.
Traders said the devaluation of the Chinese yuan also affected the gold price. The price started to rise after Chinese investors increased investment in bullion as safe-haven bet after the Chinese central bank’s surprising move to depreciate the yuan on August 13, according to the international media.
In the domestic market, gold prices have been rising every day for the past two weeks. The prices have gone up by Rs4,100 per tola over the period. The metal had plunged to four-year low of Rs47,500 on August 4.
Source: The Kathmandu Post
