Gold prices in Nepal rose by NPR 500 per tola in the domestic markets on Thursday to hit an all-time high of NPR 94,500 per tola amid the coronavirus pandemic.
The domestic bullion prices surged with the rise in the international yellow metal prices that were trading at levels highest in the last few years.
Though the physical demand for gold is nearly zero amid the pandemic, the yellow metal price has seen a sharp surge in recent months.
Lately, on July 22, the price of the precious yellow metal saw a hike of NPR 1,300 in a single day to reach NPR 94,000 per tola.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), gold was traded for NPR 92,700 per tola on July 21, 2020.
As global economies continue to reel under the implication of the coronavirus pandemic, the safe-haven appeal for gold has skyrocketed.
“COVID-19 has impacted the businesses and economies across the world which has attracted investors to the gold market,” said Mohan Kumar Sunar, President at FENEGOSIDA.
Owing to the high influx of investors to the bullion market, the price has been increasing incessantly, and the trend is likely to continue for some time.
Even though the bullion market has turned out to be the most lucrative marketplace, the trend of people selling their jewelry is not as high as expected by the gold dealers.
“As the price is going up, the customers might be waiting for it to go much higher before they trade gold belongings,” said Sunar.
“There have not been many local purchases as we had expected as people might have already sold their gold because of the economic crisis during the lockdown,” he added.