Kathmandu, Jan. 31: The price of gold in the domestic market increased Rs 15,000, while it reached the historic high of Rs 339,300 per tola (11.6638 grams) in a week.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the market price of gold increased to Rs 318,800 from Rs 301,400 per tola when the market closed the previous week. On Sunday, the market started the weekday trading by adding Rs 2,400.

On Monday, it added Rs 5,200, followed by an addition of Rs 300 and Rs 9,500 on the consecutive two days. On Thursday, the price of precious yellow metal jumped Rs 20,500 per tola, perhaps the highest single day gain as of now. On Friday, the price however corrected by Rs 20,500 to close for the week.  

According to FENEGOSIDA, the gold price surged due persisting geopolitical tensions along with an increased disagreement between Iran and the USA. In addition, the central banks of a number of countries continued to purchase more gold, which posted high demand for the precious metal, raising the price to the highest level.    

Along with gold, the price of silver also inclined by Rs 875 per tola in Nepali market. In the review period, the price climbed to Rs 7,065 from Rs 6,190, after rallied down from the historic high of Rs 7,505 per tola on Thursday.

The surge in the price of silver has been attributed to increased industrial demand for the precious metal along with the restriction imposed by China on its export.