As compared to the downfall of the price of the gold by one thousand six hundred per tola last week, the price remained stable on Sunday and decreased by Rs.500 on Monday. After a long downswing, the price of the gold increased on November 26.

Gold revived from a four-month low to the highest level in almost a week as the dollar weakened. As the price of gold and the dollar have inverse relationship, this might be the major reason for rise in price of the gold.

The price of the gold in the domestic market is determined by the international market. Gold price gained ground on Tuesday in the International market shaking off declines from the prior session due to the release of a batch of U.S. economic reports, including data on home-prices, consumer confidence and building permits.

Since China is the second-largest consumer of gold, lower prices aroused demand and private spending on gold has risen to date. China’s demand for jewelry, bars and coins rose 30 percent to 996.3 tons in the 12 months to September, while usage in India gained 24 percent to 977.6 tons, according to the London-based World Gold Council. This may be the reason for increasing in price due to high increase in demand.

The other reason might be the downswing of NEPSE. Heated up by the election, the secondary market of Nepal arouses to set a new four years highest index last week without a significant reason for its increment. Hence, due to downfall of NEPSE, the investors prefer to invest in gold rather than in securities market. This may lead to increase in demand of gold, thus declining the price.

Lots of marriage ceremonies during the month of November may also create high demand of gold which leads to increase in the price of the gold in the Nepalese market.

Besides the U.S dollar, securities market, increment in investment in other sector, oil price fluctuations, political instability there are lots of factors that influence the price of gold in the Nepalese market.