On Thursday, there was a noticeable decline in the price of gold and silver.
In a single day on Thursday, the price of gold fell by Rs. 4,000 per tola on the domestic market compared to Wednesday.
Gold prices dropped to Rs. 164,500 per tola (11.664 grams) today from Rs. 168,500 on Wednesday, according to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA).
Thursday, October 31, was a record high for the price of gold, with the yellow metal trading at Rs. 171,000 per tola.
Similarly, the price of silver has dropped to Rs. 1,960, down Rs. 55 per tola.
According to Tej Ratna Shakya, a gold trader and special member of FENEGOSIDA, the price of gold fell precipitously on Thursday in the local market as a result of a decline in the price on the global market.
He claims that as the US dollar’s exchange rate has increased, investors have been drawn to the dollar and pressure to sell gold has begun, which has caused the price of gold to decline.
He claimed that following Trump’s election as the next US president, investors and citizens worldwide, including those in the USA, began purchasing shares and dollars by selling gold, which caused the price of gold to decline.
“Selling pressure of gold has led to a decrease in its price in the international market as the international investors are encouraged to sell gold by ensuring profit,” he stated.
According to him, changes in the price of bullion on the global market also affect the home market.
According to him, the price of gold on the global market dropped by US$ 78 an ounce to US$ 2,660 today. On Wednesday, the price of gold on the global market was USD 2,738 per ounce.
The existing state of affairs suggests that the drop in the price of gold will continue in the international market.
According to him, the current situation indicates that the price of gold will continue to drop on the global market.
However, he said that the domestic gold price did not decrease in tandem with the global market because of the weakening of the Nepali rupee relative to the US dollar.
The price of gold should have dropped by at least Rs. 5,000 per tola in the Nepali market in comparison to the decline in the global market.
The Nepali rupee hits a historic low versus the US dollar.
On Thursday, the Nepali rupee fell to its lowest point ever versus the US dollar.
For Thursday, the Nepal Rastra Bank (NRB) has set the selling exchange rate at Rs. 135.16 for one US dollar.
Previously, on November 5, 2024, the dollar’s exchange rate was Rs. 134.89. Compared to the previous record, this price is 30 paisa higher.
The NRB stated that under the current system, various commercial banks may quote different exchange rates.
For the past few months, the Nepali rupee has been steadily declining in value relative to the US dollar, and today it hit a record low.
The weakening of the Indian rupee, to which Nepali currency is tied, has put pressure on it. The fixed exchange rate for the Nepali rupee is Rs. 160 to 100 Indian rupees.
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