Why has the price of gold increased?

According to the Federation of Nepal Gold and Silver Traders, on Friday, per tola was traded at 130,000 rupees. This price is the highest ever. Gold, which was traded at Rs 127,900 per tola on Thursday, set a record on Friday. Compared to Thursday, the price per tola increased by 2 thousand 100 rupees on Friday. "Compared to Thursday, the price of gold has increased by 60 US dollars per ounce, due to which the price of gold has set a new record," said Federation President Manikaratna Shakya.

On Thursday, Shakya said that it was traded at 2 thousand 231 US dollars per ounce. On Friday, its price increased to 2 thousand 171 dollars per ounce. Looking at the international market, there are indications that the price of gold may increase further. Gold, which is traded at 2,231 dollars per ounce, is expected to increase to 3,000 dollars," said President Shakya, "when the price increases in the international market, the effect is automatically seen here."

In Nepal, prices are determined based on the international market and the Indian market. The prices are determined here by considering the international market as 75% and the Indian market as 25%. It incurs 15 percent customs duty. Along with fluctuations in the international market, prices are also increased in Nepal. But common people do not get gold at the price fixed by the federation. When the general public buys gold, the businessmen charge extra fees in terms of interest, wages, profits, etc. That is why the common people are burdened by high prices.

"Although the price of gold on Thursday is Rs 130,000 per tola, the businessmen add 10 percent and about 2 percent as wages when selling gold," said a jeweler, adding more profit to it. Selling at an average of 12 percent is more expensive for the general public. According to the details of the Federation, the price of gold is constantly setting new records this week.

Although the third day of the week fell normally, the price of gold is gradually on the record track. The federation said that since Sunday is a public holiday, the price has not been fixed. 1 lakh 26 thousand 700 per tola was fixed on Monday. On Tuesday, the price decreased by 200 rupees to 126,400 rupees per tola. After that, the price of gold, which started to rise, set a record on Friday. On Wednesday, it was set at Rs 126,800 per tola. Compared to Wednesday, the tola increased by 1,100 rupees to 1,27,900 rupees. On Friday, the record price has been maintained by further increasing it.

'Friday's prices are the highest ever. Along with the strength of the US dollar, it has affected the price of gold in Nepal," said the Federation's Secretary General Dharmasundar Bajracharya, "The US Central Bank (Federal Reserve Bank) has been told to reduce interest rates three times this year, and its effect has also been seen on gold." The Russia-Ukraine war. He says that there is more influence in the market.

After the meeting between the governments of Russia and North Korea, there was talk of Russia launching a nuclear attack on Ukraine. Rumors of an impending war attracted more investors to gold. After all the investors invested in gold, its price has gone down," General Secretary Bajracharya said, "Meanwhile, the price of the dollar has also reached a new height." On Friday, 1 American dollar was equal to 133.37 rupees. According to Bajracharya, if the price increases, the market will be more affected.

According to the quota system in Nepal, commercial banks can import 20 kg of gold per day. As the demand for gold increases during the festive and wedding season, businessmen have been 'lobbying' to increase the quota. Businessmen say that the market has been slow lately. Bajracharya says that the bank was requested not to import gold after the price of gold started to rise.

'Even though the quota is 20 kg, it is difficult to consume even 5 kg in the market, the market is deserted as the price continues to rise,' General Secretary Bajracharya said, 'That is why we have been asking the Bankers Association not to import.' Foreign exchange increases. From the point of view of foreign exchange reserves, rising gold prices are not good for the country either. According to the customs department, in the first 8 months of the current financial year, 18 lakh 500 kg of gold worth 15 billion 234 million rupees has been imported. The gold was imported from UAE. From this, the government has collected a revenue of 2 billion 285 million rupees. Last year, 29 lakh 16 thousand 586 kg worth 22 billion 35 crore 45 lakh rupees was imported.