Why Gold Price Is Increasing In Nepal

Many gold analysts have now revised their price targets saying that prices could go up to rs 65 000 per 10 grams in the next 18 24 months.

Why gold price is increasing in nepal. Analysts are bullish as the fundamental factors like lower interest rates negative rates in some economies enormous amount of liquidity and expanded fiscal balance sheets of governments which are trying to push growth amidst covid 19 are expected to dictate the price trend. Gold and interest rates. Gold price in most countries is higher than the international gold rate because of imposing customs on gold imports and other factors.

Gold price has surged during the trading week between june 7 and 12. It is to be noted that the price of precious metals in nepal is determined based on international prices. There was a quota on which jewelry business can import.

While a lot has been said about factors that affect the stock markets many investors are oblivious to what causes gold prices to rise or fall here are some common factors that cause a change in price. So gold rate in nepal without customs would be 81 448 31 npr per tola but due to customs duties and other factors current gold rate per tola is 90 407 62 npr at monday 01 february 2021 02 00 pm gmt. More recently the opposite has been happening.

Gold and inflation when inflation rises the value of currency goes down and therefore people tend to hold money in the form of gold. Gold prices are retracing from highs today after touching their highest level in more than seven years. The inflation adjusted price of gold has risen while the real interest rate on 10 year treasury notes has fallen.

This relationship makes sense. Factors affecting gold prices. It is because the demand for gold increases and the supply remains the same.

So this severely gave rise in the gold price in nepal. The demand is most important role that affects the increasing price of gold in nepal. This pushes gold prices higher in the inflationary period.