The price of gold, also known as the yellow metal, set new records this week. Due to the economic upheaval in the international market, the price of gold in Nepal has set a record. The price of gold per ounce in the international market was 3293 US dollars when the Nepal Gold and Silver Traders Federation determined the price of gold on July 16. The price per tola in the local market was fixed at 1 lakh 93 thousand 100 rupees.

By July 23, the price of gold per ounce in the international market has increased by 104 US dollars. When the federation set the price on July 23 (Friday), gold traded at 3397 US dollars per ounce in the international market. On Friday in the Nepali market, per tola is fixed at 1 lakh 99 thousand 400 rupees. Jeweler Tejaratna Shakya said that this price is the highest ever.

In one week, the international market has increased by 104 US dollars per ounce. Even in Nepal, the price has increased by 6,300 rupees per tola, setting a new record," said jeweler Shakya. The first reason is the tariffs announced by US President Donald Trump. Another is the Bank of UK's interest rate policy. According to the

federation, US President Trump has increased customs duties in 90 countries. Trump's policy has also affected the world's supply system, value network and diplomatic relations, according to the international media. The Bank of UK has cut interest rates by 0.25%. "When the bank reduced the interest rate from 4.25 percent to 4 percent, investors seem to be attracted to gold," Shakya said. It has also started making records in Nepal.'

There has been instability in the price of gold since last one week. July 21 and 22 price  It was traded at 1 lakh 98 thousand 500 rupees per tola. On other days, the price has increased continuously. By Friday, it reached a new record of Rs 199,400 per tola.

Another reason for the price increase is the exchange rate. There are also some international economic and political reasons. The price of gold has also increased due to the exchange rate," said Senior Vice President Shakya, "one US dollar is worth 140 rupees. That's why the price increased.'  According to

experts, ordinary people do not buy jewelry at this price. Businessmen have increased the price by adding labor charges. Adding an average 12 percent wage increase adds up to 23,928 rupees per tola. Common people have to pay 223 thousand 300 rupees to buy gold jewelry.

It has been decided to levy 2 percent luxury tax on gold and gold jewelery and 13 percent value added tax (VAT) on precious stones including diamonds from the current financial year. Earlier, 2% luxury tax was levied on gold and gold jewelery and diamonds worth more than 10 lakh rupees. Businessmen say that if this policy is implemented, the price will increase automatically.

But the Federation has claimed that 2 percent tax has not been added to the price set on Friday. Now the federation has set the base price of gold, no tax is attached to it. If 2 percent luxury tax is added, it will exceed 2 lakh 4 thousand rupees per tola," said Senior Vice President Shakya, "A working group has been formed to clarify the issue of tax. Until the final report of the task force is published, the old bill is traded. The 2 percent luxury tax is not added while determining the price.

With the government's decision to impose a 2 percent tax, jewelers have been on a phased protest for about two months. After the budget speech, they protested by forming a struggle committee. He pressured various political parties and private sector umbrella organizations to address their demands. After that, under the leadership of the Ministry of Finance, a working group was formed with the Federation of Nepal Gold and Silver Traders, the Federation of Nepal Gold and Silver Gems and Jewelery and the Gold and Silver Traders and Kaligad Sangharsh Samiti.

The task force will make a report with conclusions on which level to impose luxury tax. It is their position to go into implementation only after that. "Probably something will be decided by Tuesday," said senior vice president Shakya, "based on that, the price will be determined." Adding 2 percent tax will increase the price.

The price is determined based on the price of the international market and the regulation rate, according to the federation. According to the government procedure, importers (banks) get 0.5 percent and traders get 0.5 percent profit (1 percent for banks and traders). Then the premium charge (fred charge, insurance) and customs duty are also added to the price. 

Currently commercial banks are allowed to import gold according to the quota system. Banks get to sell 20 kg of gold per day. According to the Federation, the price of silver has also increased by Rs 90 per tola. On July 16, the price of silver was traded at 2235 rupees per tola. By July 23, per tola was traded at 2325 rupees.

One week gold price (per tola)

July 16: 1 lakh 93 thousand 100

July 18: 1 lakh 96 thousand 500

July 19: 1 lakh 96 thousand 6 hundred