March 21: The price of gold has set a new record on Thursday.

According to the Federation of Nepal Gold and Silver Dealers Association, the price of gold increased by Rs 2,600 per tola (11.66 grams) on Thursday to reach an all-time high record. Gold, which was traded at Rs 125,200 per tola on Wednesday, is being traded at Rs 127,800 per tola on Thursday.

Earlier, on March 12, the price of gold had set a record of Rs 126,000 per tola. Within nine days, the price of gold set a new record.

The price of silver also reached an all-time high on Thursday. The price of silver, which was traded at Rs 1,520 per tola on Wednesday, increased to Rs 1,555 on Thursday.

According to Mani Ratna Shakya, the former president of the Federation of Nepal Gold and Silver Dealers Federation, it is difficult to ascertain the exact reason for the fluctuation of price of gold in recent times. However, he said that there are some factors that influence the price of gold in the market.

He remarked that the declining trust of investors in the American dollar, compounded by the ongoing Russia-Ukraine conflict and the Israel-Palestine conflict, is also a contributing factor.

"Recently, the credibility of the dollar has decreased. Instead of dollars, other currencies such as Euro and Yuan are being used in foreign trade. As these currencies are not plentiful, they have been paid through gold, it seems that this is also a factor,” he said.

He added that the banks lowering the interest rates on deposits has also affected the price of gold. He argued that the investors opted to invest in gold for better return after the banks reduced the interest rates.