April 3: The price of gold set a new record of Rs 133,000 per tola (11.66 grams) in the domestic market on Wednesday. The price of gold increased by Rs 1,800 per tola and reached an all-time high of Rs 133,000.

According to the Federation of Nepal Gold and Silver Dealers' Association, hallmark gold was traded at Rs 131,200 on Tuesday.

Similarly, the price of worked gold has reached Rs 132,350 per tola on Wednesday against Rs 130,500 on Tuesday. Likewise, the price of silver has been fixed at Rs 1610 per tola on Wednesday, an increase of Rs 65 per tola in the previous day. Silver was traded at Rs 1,545 on Tuesday.

Prior to this, the price of hallmark gold had set a record on Monday as it was traded for Rs 131,600 per tola.

The price of gold has been rising steadily in the past few weeks. The federation fixes the price of gold and silver based on the price in the international market.

According to the AFP, adding to the upward pressure on prices of gold is its demand as a safe haven in times of turmoil owing to growing geopolitical tensions, with concerns that Israel's war on Hamas in Gaza will spread further.

Traders are also keeping a close eye on developments in the long-running Ukraine conflict. Because bullion does not generate any interest, it benefits when central banks lower borrowing costs because its safe-haven status makes it more attractive to investors, the news agency added.