The prices of gold and silver have dropped noticeably on Sunday.
The price of gold has dropped by Rs. 1,000 per tola in the domestic market Sunday as compared to Friday’s price. The price of gold had increased by Rs. 1000 per tola on Friday.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of gold decreased to Rs. 91,800 per tola (11.664 grams) today compared to Rs. 92,800 on Friday.
Likewise, the price of silver has also decreased by Rs. 30 per tola to Rs. 1,170.
The price of gold has decreased sharply on Sunday in the local market due to decrease in its price in the international market, said Tej Ratna Shakya, gold trader and special member of the FENEGOSIDA.
According to him, with the rise in the exchange rate of the US dollar, the price of gold has come down as investors have been attracted to the dollar and the pressure to sell gold has started.
“Selling pressure of gold has resulted in decrease in its price in the international market as the international investors are encouraged to sell gold at a profit,” he said.
Fluctuations in the international market price have its impact on the domestic bullion market as well, he said.
Gold price in the international market has decreased by US$ 55 per ounce to US$ 1,645 today, he said. Price of gold was USD 1,700 per ounce in the international market on Friday.
The present scenario shows that the price of gold would further decline in the international market, he said. “But, we cannot predict if the price of gold would increase or decrease in this situation as the price of gold has been fluctuating significantly,” he said.
Gold shortage promoting black-marketing
The gold business could not be satisfactory even in Dashain festival this year, Shakya said.
“Short supply of gold is also affecting the market. We, the traders, are not in a position to take orders from the customers due to shortage of gold,” he said.
The demand for gold has reached above 30 kgs at present but the daily supply of gold is only10 kgs.
The Nepal Rastra Bank has allowed the commercial banks to import and supply only 10 kgs of gold daily to meet the local demand.
According to him, due to lack of gold in the market, black market has started due to which customers have to pay Rs. 5,000 more per tola of gold.
Source : TRN,
