KATHMANDU, Oct 25: Gold price has hit a six year high at Rs. 64,400 per tola (11.333 grams). The yellow metal was traded at a price Rs 60,100 per tola on Wednesday, the highest in six years time. The precious metal cost Rs 60,000 per tola on October 13, according to the Federation of Nepal Gold and Silver Dealers’ Association.
Gold price had hovered between US $ 1,221 and 1,229 per ounce in the international market in the last 10 days.
“The gold price has reached a new high in six years in the local market,” said Tej Ratna Shakya, former president of the federation. The highest price gold fetched was Rs 63,300 per tola, in August 2012. The price had later plunged to a record low to Rs 47,700 per tola.
Gold traders have attributed depreciation of the US dollar behind the hike in gold price in the international market. “It’s a normal trend that investors switch to invest in gold when dollar exchange rates become volatile,” Shakya said.
Gold price has also increased in India, the largest market of gold in the world, as the wedding season approaches. “Indian rupee has also become weaker against the US dollar, while consumption of gold in India has increased due to the approaching wedding season,” said Shakya.
Last year, daily demand of gold during the Dashain festival was around 50 kilograms, but this year the demand remained below 30 kilograms per day, according to traders. Shakya attributed high price behind the decline in demand.