Gold prices continued to soar on Wednesday, crossing the six-digit mark in the local bullion market for the first time in the midst of a faltering global economy.
Gold added Rs1,600 per tola on Wednesday to reach Rs101,400 per tola, according to the Federation of Gold and Silver Dealers’ Association.
Gold tends to gain when political and economic uncertainties are high. Investors have been fleeing to “safe haven” assets as the pandemic shows no signs of abating.
The price of a tola of gold (11.66 grams) is nearing the per capita income of Nepalis of $1,085.
Investors around the world have poured their money into the precious metal as the fall in demand for oil and stock prices has made them turn to gold.
According to media reports, gold prices hit a new record close of $2,021 per ounce on Tuesday—settling above $2,000 for the first time. The blasts in Beirut, which killed dozens and wounded thousands, “probably (added) to the shine of Gold above $2020”, according to reports.
Even before the pandemic began in January, the trade war between the United States and China had already started pushing gold prices upwards, as returns on investment were becoming uncertain, and gold is considered a safe haven asset.