Nepal: Gold Price Skyrockets Amidst the Never-ending Concerns of Coronavirus

Nepal: Gold Price Skyrockets Amidst the Never-ending Concerns of Coronavirus

After weeks of instability, gold price has neared the 100k mark as it hit Rs 99,300 per tola on Friday. It increased by 300 on Friday from Thursday when the bar was at 99,000 per tola. With the continuous surge in its price, gold has been making records every passing day in national as well as international markets.

Due to the surge, people planning weddings and yellow metal dealers are struggling to reach their goals. According to a report in the Kathmandu Post, the price of a tola of gold (11.66 grams) is nearing the per capita income of Nepalis of $1,085.

In Nepal, before the lockdown had begun, the trading cost of gold was Rs 78,500 per tola whereas there is a Rs 20,800 hike. One of the persons planning the wedding, Upendra Poudel of Sitapaila in Kathmandu was forced to suddenly postpone his wedding planned for April to November amid the Covid-19 lockdown.

“There can be no wedding without a certain amount of gold,” said Prithvi Poudel, father of Upendra. “My budget to buy gold is not enough. The price keeps going up and shows no signs of abating,” said a report in the post.

Gold is an important part of Nepal’s culture and has been used to represent the traditions and values in the culture for a long time now. Tej Ratna Shakya, former president of the Federation of Gold and Silver Dealers’ Association said, “Gold price continues to go up due to the uncertainty of the virus, as it is touted as a safe haven for global investors. The price rise in the global market is directly reflected in the domestic market.” By the end of this year, as per the prediction of International bullion analysts, the gold will end up somewhere around Rs 98,743 per tola. And when it comes to Jewellery, various other factors will be involved from labour costs to custom duty. During the announcement of the budget for the fiscal year 2020-21, Finance Minister Yubaraj Khatiwada raised the import duty on gold by Rs2,000 per 10 grams to Rs8,500.

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