The upward trend in gold prices continued across the globe on Monday, October 21.
In Nepal, fine gold reached Rs 165,600 per tola (11.66 grams) to break the record set on the previous day. Internationally, spot gold climbed 0.3 percent to reach $2,729.40 per ounce, as of 0654 GMT, after hitting an all-time high of $2,732.73 earlier, reported Reuters .
The precious yellow metal became dearer in Nepal by Rs 600 per tola for the day, compared to that on the previous day. This marks an increase of Rs 6,500 in nearly two weeks. Fine gold was traded at Rs 159,100 on October 9.
After the Dashain holidays, the price started to surge last week. It reached Rs 160,500 last Tuesday, October 15, followed by Rs 161,800 on Wednesday, Rs 162,400 on Thursday, and Rs 164,400 on Friday.
In Nepal, Saturday's gold trading follows the price set on Friday by the Federation of Nepal Gold and Silver Dealers' Association.
Industry insiders have attributed the gold’s record-breaking spree to various international factors such as intensifying geopolitical tension in the Middle East, Russia-Ukraine war, and interest rates cut by central banks in several countries. These events have driven investors toward the bullion as a safe haven, making it dearer than the dollar, they say.
The surge in prices follows widespread speculation across the globe that the yellow metal will cross $3,000 per ounce-mark in near future.
If the international trend continues, the price in the domestic market could cross Rs 180,000 per tola-mark, Diyesh Ratna Shakya, senior vice-president of the association, had told a month ago. In that case, gold jewellery will cost nearly Rs 200,000 after the addition of the goldsmith’s and other fees.
Uncertainties surrounding the US presidential elections, scheduled for November 5, have also contributed to the gold’s unstoppable rally, according to Reuters.
Similarly, silver also became dearer by Rs 20 per tola in Nepal on Monday, to Rs 2,095 per tola.