January 4: The price of gold is rising steadily in the domestic market of Nepal. According to the Federation of Nepal Gold and Silver Dealers Association (FeNeGoSiDA), the price of 24 carat gold has been fixed at Rs 102,900 per tola (11.66 grams) on Wednesday while it was traded at Rs 102,600 per tola on Tuesday. The federation has fixed the price of 22 carat gold at Rs 102,400 per tola on Wednesday against Rs 102,100 per tola a day ago. The price on Monday was Rs 101,700 per tola for 24 carat and Rs 101,200 per tola for 22 carat gold. Tuesday's price is Rs 900 more per tola than Monday while the price increased further by Rs 300 per tola on Wednesday.
The price of gold did not rise just on Wednesday, but has been increasing continuously since mid-December. On December 16, the 24 carat gold was traded at Rs 99,900 per tola and 22 carat gold at Rs 99,400 per tola.
Mid-December to mid-January is the off season in terms of gold and silver consumption in Nepal while the marriage season is considered to be the peak season of this business. On that basis, common people think that gold gets cheaper in January. This year, the price of gold went up even in the off-season, which surprised the consumers. However, the demand in the Nepali market has no role in the price of gold and silver.
Manik Ratna Shakya, president of FeNeGoSiDA, says that the price of gold increased in the international market and since the Nepalese currency is weak, gold became expensive in the domestic market. He said, “On top of that, the Nepalese currency is getting weaker compared to the dollar. The exchange rate of the dollar has reached Rs 132 for a dollar. Gold is bound to be more expensive.”
Experts say that after the Russia-Ukraine crisis that has been going on for a year and the slump of some of the world's economies, people have taken gold as a safe haven for investment, and its value increased in the international market.
Organizations working in the economic sector, including the International Monetary Fund (IMF) estimated that many economies in the world will go into recession, so the price of gold is expected to rise even more in the coming days.
