Nepal’s gold price hit sky high on June 25, 2019. The Federation of Nepal Gold and Silver Dealers Association revealed that the price of Hallmark gold is being traded for NPR 65,500 per tola.
This is the highest-ever price quoted for Hallmark gold. The price for yellow gold started with NPR 63,000 on June 19, 2019, followed by NPR 64,000 on June 20, 2019 and then shot up by another NPR 1,000 on June 21, 2019, continuing to remain the same until June 24, 2019.
Gold price has been increasing ever since the government announced the Nepal Federal budget FY 2019-20, wherein the import duty was increased to NPR 800 per 10 gms.
According to Federation of Nepal Gold and Silver Dealers Association Former President Tej Ratna Shakya, gold prices are likely to rise further. The hike in prices has reduced the demand for gold in the local bullion market. Earlier, gold sales during this time of the year would touch 35 kg per day. However, the sales have reduced to 25 kg per day this year.
“Demand falls sharply when prices cross Rs60,000 per tola. Gold demand currently has been reduced by 44 percent during the peak season. The period between June to July is considered to be a peak gold season as it is an auspicious time for weddings. Though traders expected a rise in demand for the precious metal, buyers are staying away,” Tej Ratna Shakya said.
On the positive side, the hike in gold prices has attracted people with old gold ornaments to sell them at gold shops for an attractive price in exchange.