Gold price declines in Nepal
KATHMANDU: Gold price declined by Rs. 1,000 per tola in the domestic market, Friday.
The gold traded at Rs. 72,400 per tola (11.339 grams) today. On Thursday, the price of gold was Rs. 73,400 per tola.
The price of gold had reached Rs. 75,500 per tola on Monday which was the record highest price of gold in Nepal.
The price has been fluctuating significantly in the domestic market for the last couple of days due to its unstable price in the international market, said Tej Ratna Shakya, a gold trader and a distinguished member of the Nepal Gold and Silver Dealers’ Association.
A significant decrease in the gold price in the international market has contributed to the fall of the price in the local market today, he said. The price of gold decreased by US$ 18 per ounce to US$ 1,525.50 in the international market today, he said.
The price of gold had reached 1,547 USD per ounce in the international market Monday. The on-going trade war between America and China is the main reason behind the increasing price of the precious yellow metal, he said.
Foreign investors and general people of America are investing in gold which has led to its high demand, resulting in its skyrocketing price, he said. However, in Nepal demand of gold has decreased.
“Gold demand is almost zero in the market even during the Teej festival due to skyrocketing price, he said. “We, the traders, have been panicked as we have been without fresh demand of gold. We are not in position to buy jewellery from the customers as we have already invested money to purchase jewelleries,” he said.
According to him, the price of gold has reached beyond the purchasing power of the consumers and its demand has gone down in the market. Daily demand of gold was 50 kilograms during the Teej festival a year ago, Shakya said.
“We have never thought that the demand of gold will reach this low during the Teej festival,” he said. “Even if the gold price comes down, it will take time to revive the gold market.”
Published Date: Friday, August 30th, 2019 | 09:07 PM