Gold price goes up by Rs 500 per tola; traded at Rs 118,500

KATHMANDU: The bullion prices increased in the domestic market today. According to Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), price of fine gold hiked by Rs 500 to trade at Rs 118,500 per tola. Tejabi gold increased to Rs. 117,950. Gold climbed for the first time since February 21. Likewise, silver gained Rs 5 to stand at Rs 1,400 per tola. 

Gold prices rebounded due to a weaker US Dollar and escalating tensions in the Middle East. Despite easing hopes of early rate cuts by the Federal Reserve, bullion prices recovered as Fed policymakers were less convinced about inflation decreasing to the target of 2%. The central bank is not in a rush to implement rate cuts as it could lead to increased risks of persistent inflation.