Gold hit a five-year high of Rs60,000 per tola in the domestic market last week with traders attributing the jump in prices to a rising US dollar and higher prices on the international market. The Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida) fixed the price of the yellow metal at Rs60,000 per tola (11.66 gm) on October 15, a day before the Dashain holidays started, bringing a frown to the faces of festival shoppers.

As per Fenegosida, gold hit a record high of more than Rs63,000 per tola six years ago before dipping to a low of Rs47,800 on August 4, 2015. The price of gold has been on an upward trend for most of last month. Over the period, the yellow metal has become dearer by Rs2,400 per tola, as per Fenegosida records.

As per international media reports, gold was up 0.2 percent at $1,227.31 an ounce on Friday. It was up about 0.7 percent last week. A slump in the stock prices of Asian companies took a toll on gold prices. “Gold prices nudged higher as Asian shares fell on renewed political and economic concerns, with the metal on track for its third straight weekly rise,” Reuters said.

Gold is considered a safe haven, and prices rise in times of market and political turmoil. Domestic gold prices are fixed mainly on the basis of bullion prices on the international market.

As per Fenegosida, the price of gold swelled in the domestic market due to a depreciation of the Nepali rupee against the dollar and a rise in gold prices abroad. “Due to these reasons, commercial banks that have been assigned to sell gold are now charging a high price for the precious metal,” said Fenegosida President Mohan Kumar Bishwokarma.

Nepal Rastra Bank has fixed the exchange rate of the Nepali rupee at 117.62 per US dollar for Monday. On October 10, the Nepali currency fell to a record low of 119.33 against the greenback. Bishwokarma said demand for gold had been increasing in the domestic market despite the rise in prices with the festival season in full swing. In response to the rise in demand, the government three weeks ago raised the gold import quota by 5 kg to 25 kg daily.