Gold fever grips Nepal as economy stalls and fears mount
Summary
Despite Nepal's stagnant economy and political turmoil, gold demand has surged, with daily purchases reaching 40 kg and prices hitting record highs amid fears of demonetisation and further price increases.
Key Points
- Nepal's economy has slowed sharply due to protests and natural disasters, dropping growth forecasts from 5.4% to as low as negative 1.5%.
- Gold demand in Kathmandu has surged dramatically to around 40 kg daily, surpassing expectations for the wedding season.
- Political uncertainty and rumors of demonetisation have driven investors and the private sector to buy gold as a safe-haven asset.
- International gold prices broke records by surpassing $4,000 an ounce, with projections for continued bullish trends impacting local prices in Nepal.
