The price of gold has increased by 5 thousand 200 rupees in the last week. On the previous Friday (June 16), the gold price was 1 lakh 88 thousand 500 rupees per tola. On the first day of last week, gold was traded at 188,800 rupees per tola on Sunday. On the last day of the week, on Friday, gold per tola remained at 193,700 rupees, according to the Nepal Gold and Silver Traders Federation.

The federation said that compared to Friday of the previous week, the price of gold has increased by 5,200 rupees. Analysts say that the price of gold, which is considered a safe investment, has increased due to various reasons including slow economic activity and geopolitical uncertainty in the international market.

Last week, silver has become expensive by 170 rupees per tola. Federation General Secretary Kiranbhai Bajracharya says that a new record has been set in the price of silver in Nepali market. Last Friday, silver per tola reached 2 thousand 150 rupees. Last Friday, the price of silver was 1 thousand 980 rupees per tola. "On the first day of the week, Sunday was 1,702 rupees per 10 grams, and on the last trading day of the week, on Friday, 1,843 rupees per 10 grams remained the highest price so far," he said.

In the international market, the price of gold rose by 0.2 percent to 3359.26 US dollars per ounce on Friday, according to the Indian media. It is also said that the price of silver is the highest since 2012. Gold prices are expected to rise on a weekly basis as various data boosted hopes that the US Federal Reserve will cut interest rates. Analysts say that even though there was a phone conversation between US President Donald Trump and Chinese President Xi Jinping on Thursday amid growing trade tension, tax, mineral disputes, the problem will not be resolved and negative news about customs will continue to increase the price of gold.

Meanwhile, through the budget for the financial year 2082/83, 2 percent luxury tax on gold and gold jewelry and 13 percent value added tax (VAT) on precious stones including diamonds will be levied. Consumers are told by traders that the price of gold and gold jewelery alone will increase by 6 to 8 percent. They also said that 13 percent VAT and 6 to 8 percent luxury tax will be added on mixed jewelery with gold and stones. Earlier, 2% luxury tax was levied on gold and gold jewelery and diamonds worth more than 10 lakh rupees.

Even if the government says 2 percent luxury tax, when it reaches the consumers, the senior vice president of the federation, Diyasaratna Shakya, says that such a tax will be added. "Commercial bank pays 2 percent luxury tax when importing gold, then, on the recommendation of the federation, businessmen pay an additional 2 percent when they buy, and when they sell jewelry by adding 2 percent, it becomes 6 percent," he said. "Consumers only have to pay 6 percent luxury tax when they make jewelry." That's why multiple taxes happened.' 

According to him, 19% VAT will be charged on jewelery made with gold, including diamond, amethyst, emerald, ruby, etc. If gold worth 100 rupees and precious stones worth 10 rupees are added, 13 percent VAT of 110 rupees is charged on its production. Looking at it this way, consumers have to pay 19% tax including 6% luxury tax and 13% VAT,” he said. Earlier, the difference between the buying rate and the selling rate was only normal, but now the difference is high, he said.

He says that due to rising gold prices, the market is in recession and the market is only driven by forced conditions including marriage. "Government's policy now thinks that the gold and silver market will be closed," he said. This situation would not have happened if the state had done its homework. Let it be reconsidered.'