Gold’s record-breaking rally, which had hit the brakes after Trump’s victory in the US presidential election, has regained momentum with escalation in Russia-Ukraine war.
The price of gold in the domestic market of Nepal, which follows the international trend, surged by Rs 1000 per tola (11.66 grams) on Thursday, November 21, marking an increase for the fourth day in a row.
The precious yellow metal has become dearer by Rs 4,000 per tola so far this week. After dropping by Rs 100 to Rs 160,000 per tola on Sunday, the price has continued to rise – by Rs 1,000 per tola on Monday, Rs 1,100 on Tuesday and Rs 900 on Wednesday.
On Thursday, the Federation of Nepal Gold and Silver Dealers' Association (Fenegosida) set the price of fine gold at Rs 164,000 per tola. Three weeks ago, on October 31, it had reached an all-time high in the domestic market, hitting Rs 171,000 per tola amid widespread speculation that the gold’s bullish trend in the international market could cross $3,000 per ounce soon.
However, the rally hit the brakes as the US dollar started gaining strength with Republican Donald Trump, who has vowed to strengthen the US economy through his ‘America First’ policy, emerged victorious in the US presidential election earlier this month.
Ukraine fired a series of British Storm Shadow cruise missiles into Russia on Wednesday, just a day after firing US missiles, according to Reuters.
“Gold prices rose for a fourth straight session on Thursday, driven by safe-haven demand amid escalating tensions between Ukraine and Russia, while investors awaited remarks from U.S. Federal Reserve policymakers for clues on the interest rate outlook,” reported Reuters. “Spot gold was up 0.5% to $2,663.47 per ounce, as of 0745 GMT, while U.S. gold futures rose 0.6% to $2,666.20.”
However, the price of silver remained constant at Rs 1,950 on Thursday, following a Rs 5 per tola decline on Wednesday.
