Gold jumped to a record high Rs 21,435 per 10 gram today — Rs 25,001 per tola (11.664 gram) — in the domestic market, a rise by Rs 600 per 10 gram in a day from yesterday's Rs 20,835.
"The price difference of Rs 600 per 10 gram (Rs 700 per tola) is also a record price hike in one day," said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers' Association (NEGOSIDA).
The domestic market has been forced to bear the burnt of deepening woes in the global financial system that have triggered rampant safe-haven buying of gold and silver with gold testing above $1,030 per ounce in the international market today.
"Continuous weakening of dollar, rising crude price that hit $112 per barrel and economic slowdown in the US, have pushed the price of precious yellow metal up," Shakya added.
Even though Gold is in the midst of a mega bull run, the demand has been continuously rising in the largest gold consuming countries like India and China fuelling the price hike. If China realises its claim that it will buy 2,500 tonnes of gold, the gold prices might even go sky high, gold traders claimed.
"End of the wedding season for this Nepali year and the Constituent Assembly election by the end of this month may hurt the domestic gold market even more," he said, adding that though the price of precious yellow metal might come down as it has reached its peak.
In the international market also, gold prices reached its highest in 25 years, hitting $1,032.70 today as investors sought a safehaven against a backdrop of tumbling world stock markets, a falling dollar and record oil prices.
After hitting the high in early trade, gold eased back to $1,024.49 per ounce on the London Bullion Market.
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