KATHMANDU:  The price of gold has increased by 500 per tola in the local market on Monday. The yellow metal was traded at Rs. 76,500 per tola today.

The price of gold has increased in the international market which led to a rise in its price in the domestic market, said Tej Ratna Shakya, special member of Federation of Gold and Silver Dealers’ Association.

“The demand for gold has increased in the international market as the investors are willing to invest in gold as safe and secure assets that contributed to increasing its price,” he said.

The international share market has decreased due to the fear of investors’ concerns over a coronavirus outbreak in China, resulting in an increase in gold demand, he said.

“It is adding a level of uncertainty to the overall market that is forcing people to consider safer investment in the event fearing a further spread of the disease,” said Shakya.

The price of gold has increased by US$ 17 per ounce to US$ 1,589.70 per ounce on a single day, he said, adding that that present fluctuation of gold price in the international market showed that its price would further increase in the local market.

“As per the market analyses, the price of gold will reach Rs. 80,000 per tola in the local market,” he said.

According to him, the fresh demand for gold has been increasing lately due to the wedding season.

The daily demand for gold reached 20 kilograms, he said. The demand for gold was below 10 kilograms three weeks ago.

He, however, said that the present demand for gold was low because the demand for gold was 40 kilograms a day in the same period a year ago.