Gold nears 1 lakh per tola ceiling in Nepal; International Market anticipates volatility amidst Biden-elect and Trump's future actions

Gold has been gaining for a few days now in the Nepalese market. According to the official website of the Federation of Nepal Gold and Silver Dealers' Association (FENEGOSIDA), fine gold is being traded today at Rs. 98,200 per tola while Tejabi gold is being traded at Rs. 97,700 per tola.

Just three days ago, fine gold was trading at Rs. 96,200 per tola. Thus, it seems that the yellow metal is growing consistently for a few days. Silver has also followed suit. Silver is trading at Rs. 1,285 per tola. Just three days ago, it was trading at Rs. 1,210 per tola.

According to kitco.com, the international gold market has also started the week on solid footing with modest gains following last week's nearly 4% rally.

As President-elect Joe Biden takes office, more stimulus packages are expected to come. While this might temporarily solve problems at home for Americans, it will eventually weaken the dollar against gold. Thus, investors will put their wealth on gold, which is considered a safe haven at times of uncertainty and crisis.

However, things are not as black and white as they seem. Even though the White House might be Democratic in the USA this time, there are chances of having a Republican majority in the Senate. This power-opposition will make it extremely hard for President Biden to execute his policies, which includes tax raise on corporations, more spending to curb Coronavirus, and such.

Furthermore, President Trump will likely not rest without shaking some dirt. Thus, instead of expecting a straight surge in financial markets, investors anticipate some volatility based on Trump's actions before Joe Biden can take things his way.