Gold Price Hike – Reasons for increase in gold price
The Nepalese Market is shook with the gold price increase reaching an all-time high. The price of the Gold in the market as of today (9 Sept, 2019) is Rs. 71,700. Just a month ago, the price of fine gold was Rs.65,000 per tola. Within a single month, the value of gold has rocketed to almost Rs.8,500 in increase.
The whole globe is currently facing its downfall in the share market. People have begun investing in gold rather than other investments due to the rapid loss of interest in these other investing opportunities. Every investor seems to put their trust in gold and is selling aways their shares to purchase gold securities.
After witnessing the trade war between China & US and Trump’s policies spark confusion on a global scale, our economic graphs are facing decline. Investors who used to purchase securities like debentures, stocks and even cryptocurrencies, are now looking for gold to invest in. Hence, the value of gold is gradually increasing but at a high rate.
From the issue of the US with Iran and North Korea, Brexit Issues and Kashmir issue in India, they are creating uncertainties in coming days in regard to political moves and situations. It is due to these geopolitical uncertainties that hedge is causing the prices to hike.
The value of currency especially dollars is an important factor that affects the gold price. When the Indian currency value was weakened, it was obvious that the price of the gold in terms of rupees would increase. And since we have a direct relation with India being our neighboring country, we also felt the surge of gold price along with the other global economies. China has already devalued its currency (Yuan) by 2% against the US dollar. However, there is an important relationship between the two. Higher the dollar price, lower will be the gold value. Though, this time it is exactly the opposite.
Click here to find out the value of gold & silver as of today. The current gold & silver price per tola in Nepal is based on “Federation of Nepal Gold & Silver Dealers Association” – the official website; located in Naxal, Kathmandu, Nepal.