Gold climbs Rs 400 to trade at Rs 118,000

KATHMANDU: Price of fine gold reached Rs 118,000 per tola, an increase of Rs 400, according to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA).

Likewise, Tejabi gold is traded at Rs 117,450 per tola.

Price of bullion has hiked continuously for the past few days in domestic markets. However, silver dropped by Rs 20 to stand at Rs 1410 per tola.

Value of US Dollar soared with the release of Producer Price Index (PPI) on Friday evening. Published by the Bureau of Labor Statistics, PPI (m/m) increased to 0.3%, a significant improvement from previous reading of -0.1%. The greenback appreciated which weighed heavily on the price of gold. However, fears of higher US interest rates kept the prices rangebound with the bullion rebounding Monday morning.