As Nepali Government relaxes lockdown and allows businesses to resume at some places across the country, jewelry shops started reopening after nearly two and a half months.
The Federation of Nepal Gold and Silver Dealer Association (FENEGOSIDA) has fixed the gold price at a record high of NPR 87,400 per tola in the domestic market on June 7.
The gold price has increased by NPR 10,400 per tola from the last rate published by the FENEGOSIDA before the lockdown. The price was set at NPR 77,000 per tola on March 23.
The last time the FENEGOSIDA has fixed a record high price for gold was on March 11, 2020, when it was traded at NPR 82,700 per tola. However, the coronavirus pandemic has led to the fall in the gold price to NPR 77000 per tola.
After that, the FENEGOSIDA has stopped publishing the rate as jewelry shops remain closed due to the nationwide lockdown imposed by the Nepali Government to contain COVID-19 spread.
“The market had remained closed due to the lockdown. So, we also stopped publishing the rate. However, local administrations in some places have relaxed the lockdown in the last few days and allowed jewelry shops to open for a certain time,” informed Mani Ratna Shakya, the immediate past President of FENEGOSIDA.
“We published the rate so that the dealers and jewelry shops in those places do not have confusion about the price,” he added.
The sudden surge in the gold price is due to the high demand in the international market as investors considered gold a haven during the ongoing economic crisis.
Moreover, Nepal’s decision to increase the gold import duty by NPR 350 per tola has further contributed to the surge in the price.
Similarly, the silver price has also increased to NPR 925 per tola from NPR 730 on March 23.
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