Kathmandu, February 19
With the coronavirus epidemic sending shockwaves around the world, gold price in the domestic market scaled to a new peak of Rs 77,100 per tola today.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), bullion was traded at Rs 76,700 a tola on Tuesday and rose by Rs 400 per tola overnight to hit a new record.
“The coronavirus has affected the economy of China as well as the international market significantly.
This has boosted the appeal of the precious yellow metal, which is considered a safe haven during such crises,” explained Mohan Kumar Sunar, president of FeNeGoSiDA.
As per him the global stock market has been affected by the virus outbreak, and investors are thus flocking towards gold.
While the trade war between the United States and China and tensions between Iran and the US had already hit the market in the current fiscal, Sunar added, “The surging price of gold during the wedding season has adversely affected the market.”
The gold trade has been limited to 20 to 25 kilograms per day in the wedding season this year against the normal sales of around 40 kg in the past years, he added.
“Gold price was stable till Monday, but its price started to rise from Tuesday and set a new record today, denting the demand in the market.”
On Sunday, gold was traded at Rs 76,500 per tola and its price had remained constant on Monday.
Reuters reported that gold climbed towards a seven-year peak in the international market today as concerns over the global economic impact of the coronavirus epidemic boosted safe-haven interest, while palladium resumed its record rally driven by concerns over a supply shortfall.
Amid this, the price of silver also reached Rs 905 a tola today.
As per the FeNeGoSiDA, the grey metal was traded at Rs 890 per tola on Tuesday.