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Gold hits 2-year of Rs55,800 per tola in Nepal

Gold hits 2-year of Rs55,800 per tola in Nepal

KATHMANDU: Gold hit a two-year high of Rs55,800 per tola, surging Rs1,000 per tola on Friday as world stock markets tumbled, the Federation of Nepal Gold and Silver Dealers Association (Fenegosida) said.

The association said that gold prices had jumped Rs2,200 per tola over the week. On Sunday, the yellow metal traded at Rs53,300 per tola before dropping to Rs53,000 on Monday. It gained Rs1,000 per tola on Tuesday to settle at Rs54,000. Rices remained stable on Wednesday and increased to Rs54,500 on Thursday.

Tej Ratna Shakya, former president of the association, said that falling world stock markets was the major reason behind the rise in gold prices as nervous investors turned to “safe haven” buying, pushing up demand for the yellow metal. Spot gold surged more than $50 to $1,248 an ounce on Friday, according to international media reports. Shakya expects gold prices to increase further.

Meanwhile, the rise in prices has dampened demand in the domestic market. “Demand for gold has been going down significantly for the last three days with prices climbing,” said Shakya. Despite the wedding season being in full swing when a rush for bridal jewellery boosts demand, gold sales have been slow, he said.