Gold cost hits record tall in the residential market

KATHMANDU, JULY 16

Gold cost hits

In the domestic market, the price of gold has skyrocketed. More specifically, on Tuesday, it went up by Rs 900 per tola. Moreover, the cost of yellow metal has been climbing continuously in recent days. Despite slight oscillations, it has broken current records. Furthermore, the affiliation has been approved by the League of Nepal Gold and Silver Dealers. As a result, the expected price of pure gold at this time is Rs 147,800 per tola. From Rs 146,900 per tola on Monday, this is an increase. As a result, this spike coincides with the beginning of the Nepali month of Shrawan and a notable increase in the price of gold.”

The price of a tola of gold increased by Rs 299 on Monday. In the home market, this established a contemporary record. Tejabi gold, also known as wrought gold, currently trades for Rs147,100 per tola. In contrast, on Monday, the price per tola was Rs 146,200.

In the meantime, silver has become less expensive in the Nepali showcase. The current silver exchange rate is Rs 1,875 per tola, down from Rs 1,885 per tola on Monday.

Why is the gold price rising?

Gold is viewed by investors as a trustworthy investment. When interest rates drop, gold prices often climb. During this period, gold becomes more valuable than income-producing investments like bonds. Gold is seen by investors as an inflation hedge. They wager that gold will continue to be valuable even as prices climb.

For the seventeenth month running, the People’s Bank of China has been purchasing gold. During this time, the bank increased its reserves by 160,000 ounces. The bank has 72.74 million troy ounces of gold in its reserves as of right now, according to Reuters.

A research paper from UBS dated April 9 suggests that central banks should think about diversifying their holdings outside of US dollars. Given the volatility of geopolitics, people might think about buying gold. Demand is driving up prices that regular investors have already boosted as China raises its reserves.
Because of the drops in real estate values and market prices in the past few years, Chinese investors are switching to gold as a replacement asset. This change in investment approach is a reaction to declining market prices and real estate values, claims a research paper released by Capital Economics on April 9.

The central banks of Turkey and India are also increasing their gold reserves. India’s GDP growth is the driving force behind these acquisitions, according to UBS.

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