After free fall, gold price stabilises

KATHMANDU, APR 18 -

After two days of free fall, the bullion price has stabilised in the local market on a nominal growth in price of the yellow metal in the international market.

The Federation of Nepal Gold and Silver Dealers’ Associations on Wednesday fixed the price of gold at Rs 42,440 per 10 gm (Rs 49,500 per tola) and silver at Rs 770 per 10 gm (Rs 898 per tola)—same as the pricing of Tuesday.  

The sharp decline in gold price on Monday and Tuesday—Rs 6,300 per tola (11.664 gm)—saw consumers flock to jewellery shops to buy the yellow metal while the price remains low and steady.

However, customers could not get gold at the price set for the day. “The dealers are reluctant to sell jewellery items and some shoppers even demanded an additional  Rs 2,000 per tola citing of loss,” said Kamala Shrestha, a housewife.  

According to traders, the local market normally consumes 30 kg of gold a day. With the price sliding for  the two consecutive days, the demand for the precious yellow metal is believed to have gone up as high as to 50 kg a day. However, under the current quota set by Nepal Rastra Bank only 15 kg of gold is made available daily for local market.

Ramesh Maharjan, president of the Nepal Gold, Silver, Gem and Jewellery Federation, said that it was normal to see customers’ demand to go up whenever the price hits low. “The price fall in global market has shot buying trend, mainly from Asian markets including India and China,” he added.

The price of gold dropped to a 26-month low on Tuesday. “We hope that the price would gradually bounce back within a few days,” he said.

Source: The Kathmandu Post