Gold nears Rs 300,000 per tola

KATHMANDU: Gold prices surged sharply in the domestic market on Wednesday, pushing the price of the yellow metal close to Rs 300,000 per tola (11.664 grams).

According to the Federation of Nepal Gold and Silver Dealers Associations, the price of fine gold increased by Rs 10,400 per tola on Wednesday to reach a new record of Rs 295,100.

Gold was traded at Rs 284,700 per tola on Tuesday. The yellow metal was traded at Rs 278,800 per tola on Sunday and Rs 282,000 per tola on Monday.

The sharp rise in domestic prices follows a strong rally in the international market. Gold breached the $4,800 per ounce mark to reach an all-time high of $4,865.73 per ounce during early trading on Wednesday. According to Reuters, investors flocked to gold as a safe-haven asset after a broad selloff in U.S. assets, triggered by heightened tensions between the United States and NATO over Greenland.

Since Nepal meets its entire gold demand through imports, any fluctuation in international prices is directly reflected in the domestic market.