August 13: The price of gold took a nosedive in the Nepali market on Wednesday (August 12) after steady rise for several weeks.

The price of the precious yellow metal dropped by a massive margin of Rs 6,200 per tola (11 grams approximately) in a single day.

According to the Federation of Nepal Gold and Silver Dealers Association, gold was traded for Rs 95,400 on Wednesday.

This is the highest single-day drop in gold price since the market resumed after the nationwide lockdown was imposed on March 24.

On Thursday, gold is being traded for Rs 97,800 per tola, an increase of Rs 2,400 overnight.

According to the Federation, the price of gold took a massive plunge in the domestic market after the price of the precious yellow metal declined in the international market. The price of gold in the international market had recently soared above US$ 2000 per ounce but it dropped to 1890 this week.

The federation said it is studying the reason for the sudden plunge in price of gold in the international market.

Analysts believe that the price of gold went down in the international market after Russia claimed to have discovered the vaccine for coronavirus. This breakthrough is said to have attracted investors to other sectors.

Last week, the price of gold reached an all time high in the Nepali market as 11 grams of gold was traded for Rs 103,500. The price of gold in the Nepali market had remained above Rs 100,000 in the past two weeks.