KATHMANDU, March 4: Gold and silver have touched new heights in the domestic market by breaking all previous records. The price of gold has touched a record high of Rs 40,590 per tola (1 tola =11.664 grams) in the market.
Gold has continued to probe into uncharted territory following the unrest in the Middle East thus breaking the earlier record of Rs 40,400 per tola created in mid December.
The upwards spiral in the price of gold has caused the business volume to drop down by more than 50 percent.
The gold price was recorded at 1,429.52 US dollars a troy ounce while the price of silver was recorded at US dollar 34.53 per ounce.
According to Mani Ratna Shakya, senior vice president of Nepal Gold and Silver Dealers Association (Negosida), the rising inflation and turmoil in North Africa and the Middle East has reverberated around the globe thus boosting the price of gold in the local as well as the international market.
According to Negosida, people prefer refined jewelries than the new ones due to the hike in the price of gold. “If the political unrest in the Middle East shows no sign of improvement, the price of the gold as well as silver is expected to go up again,” said Shakya.
The price of silver has also touched new heights by creating an all time record of Rs 965 per ten gram on Thursday. “The price of silver has increased by more than double this year,” said Shakya. According to Shakya, silver was traded at Rs 500 per tola last year during at this time.
With the rise in the price of precious metals, the demand has dropped significantly, said Negosida. “During marriage seasons, the demand for gold and silver used to rise almost two-fold, but we have not been able to witness so this season,” said Shakya.
According to Negosida, the demand for gold normally used to be 40-45 kg per day, but, the current demand stands at 25 to 30 kg per day.
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