Gold glitters at a record high of Rs 126,000 per tola
Gold glittered to a new high of Rs 126,000 per tola (11.664 grams) in the domestic market on Sunday.
According to the Federation of Nepal Gold and Silver Dealers Associations, the yellow metal was traded at Rs 125,400 per tola on Saturday.
The federation is the authorized agency to fix gold and silver prices in the domestic market. It publishes gold and silver prices every morning for the day’s trading. Since all the gold that Nepal consumes is sourced from the international market, any change in gold prices in the international market is directly reflected in the domestic market.
Gold prices had been setting new records in the domestic market since Tuesday. The price, however, remained stable on Friday. Gold was traded at Rs 125,000 per tola on the day.
The price of the precious metal climbed to a record high in the international market on Friday. Spot gold rose 0.5 percent to $2,170.55 per ounce, while US gold futures settled 0.9 percent higher at $2,185.50, Reuters news agency said, adding that bullion was set to post its biggest weekly percentage increase since mid-October.
The price of gold has gone up by over $300 per ounce since the beginning of the Israel-Hamas war. Some analysts say the price could surge past the $2,300 mark very soon.
Nepal Rastra Bank (NRB) has designated commercial banks to import and sell gold in the domestic market. It has set a daily import quota at 20 kg. The new quota was set in September last year. The central bank had reduced the import quota to 10 kg per day in March 2022, citing increasing pressure on foreign currency reserves.
Jewelers, however, have been saying that the domestic demand is much higher than the central bank’s import quota. The increasing smuggling of gold in recent months substantiates jewelers’ claims that the government quota is too little to meet the demands in the market.
Gold imports fell by 59.3 percent over the first six months of 2023/24. According to the Export Promotion Center, Nepal imported around 1,300 kg of gold worth Rs 11.88bn during the review period. In fiscal year 2022/23, Nepal imported gold worth Rs 43.89bn. Gold was Nepal’s 11th largest import commodity with a 1.55 percent share in total imports in the six-month period of the current fiscal year.
While a large chunk of gold produced in the world is used to make jewelry, gold is regarded the world over as the most reliable investment in securing assets during political and financial uncertainty.
According to the World Gold Council, the gold demand was 8 percent ahead of its five-year average at 1,147 tons in the third quarter of 2023, excluding the over-the-counter market. The net central bank buying was reported around 337 tons, which was the third strongest quarter, according to the council.
Nepse surges by 22. 10 points on Sunday
The Nepal Stock Exchange (NEPSE) gained 22.10 points to close at 2,052.65 points on Sunday.
Similarly, the sensitive index surged by 4.26 points to close at 364. 53 points.
A total of 7,043,457-unit shares of 304 companies were traded for Rs 2. 92 billion.
Meanwhile, Wean Nepal Laghubitta Bittiya Sanstha Limited (WNLB) and Jalpa Samudayik Laghubitta Bittiya Sanstha Limited (JALPA) were the top gainers today, with their price surging by 10. 00 percent.
Likewise, Chirkhwa Hydropower Limited (CKHL) was the top loser as its price fell by 7.06 percent.
At the end of the day, total market capitalization stood at Rs 3. 22 trillion.
Gold price increases by Rs 1, 000 per tola on Sunday
The price of gold has increased by Rs 1,000 per tola in the domestic market on Sunday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 126, 000 per tola today. It was traded at Rs 125, 000 per tola on Friday.
Similarly, tejabi gold is being traded at Rs 125, 400 per tola. It was traded at Rs 124, 400 per tola.
Meanwhile, the price of silver has increased by Rs 5 and is being traded at Rs 1,475 per tola today.
MCA-Nepal advances 19km cross-border section of transmission line
The 40th MCA-Nepal Board meeting held on 6 March 2024, decided to advance the 18 km Nepal portion of the Butwal-Gorakhpur power transmission line on a priority basis by separating it from the larger 315 km transmission line.
The Board determined that expediting the cross-border section will help to meet the obligations of the cross-border power trade agreement between Nepal and India. “MCA-Nepal Board made this determination collectively owing to the critical importance of this segment to the Government of Nepal and the Nepal Electricity Authority (NEA).
The separation of the 18 km segment from the larger transmission line network will enable a quicker procurement process and its implementation in order to ensure that the line is completed on time by May 2026 to connect with the lines under construction on the Indian side of the border.” shared Nabin Raj Singh, Joint Secretary and Spokesperson at the Ministry of Energy, Water Resources and Irrigation post the Board meeting. The cross-border transmission line is a critical component of the Electricity Transmission Project and will facilitate cross-border electricity trade to meet Nepal’s needs. In Oct 2019, both the Governments of Nepal and India agreed to the financing and ownership framework that will govern the implementation of the New Butwal – Gorakhpur cross-border transmission line.
For the remaining 297 km transmission line, MCA-Nepal continues to work to procure the services of design-build contractors to complete the construction of the transmission lines within the agreed timeline. MCA-Nepal remains committed to ensuring the transmission lines are built on time, within budget, and in accordance with GoN and MCC’s environmental and social standards, says a statement issued by MCA-Nepal.
