Kathmandu, June 22 -- Kathmanduites are rushing to sell their jewellery after gold prices hit a new peak. Traders said that buyers of the yellow metal had become rare.

"There are no buyers at all," said Tej Ratna Shakya, former president of the Federation of Nepal Gold and Silver Dealers Association. "The bullion market in Kathmandu is flooded with sellers."

Gold hit an all-time high of Rs65,000 per tola on Friday. Bullion market analysts predict that the price may go up to Rs70,000 per tola.

According to Reuters, gold prices increased to a near six-year high on Friday, surpassing the key $1,400 level on rising tensions in the Middle East. The combination of a weaker dollar, falling yields and the Middle East tensions have lifted gold ...