Gold falls to three-month low of Rs 51,700 per tola

KATHMANDU, Sept 14:

Gold price dropped to a three-month low of Rs 51,700 per tola (11.664 grams) on Sunday.

Price of the yellow metal plummeted by Rs 300 per tola on Sunday, compared to the price recorded on Friday.

Officials of the Federation of Nepal Gold and Silver Dealers´ Association said gold price has been falling for the past few weeks due to price slump in the international market.

Gold was traded at US$ 1,229.70 per troy ounce in the international market on Sunday compared to $1,232.80 per troy ounce on Friday.

“Gold price has been constantly going down in the international market. This has affected prices in the domestic market,” Tej Ratna Shakya, immediate past president of the federation, told Republica. Shakya attributed fall in price of gold in the global market to appreciation of US dollar against major other currencies as well as Nepali rupee. “US dollar has been gaining value against major currencies, including Pound Sterling and euro, for the past couple of weeks,” Shakya said, adding, “It is because of this reason that investors are turning to greenback.”

According to Nepal Rastra Bank (NRB), Nepali rupee has lost Rs 1.15 against US dollar over the past two months. US Dollar was exchanged at Rs 97.35 on Sunday.
Mani Ratna Shakya, president of the federation, said drop in global oil prices is the other reason that has pushed gold price downwards. “Drop in oil prices has lowered gold production cost at mines. This has also affected prices,” he added.

Meanwhile, traders say demand for golden jewelries has not increased despite drop in gold price. “Festive season is about to begin, but demand for gold has not increased,” immediate past president Shakya said. “Natural disasters in different parts of the country might have affected people´s purchasing power thereby affecting jewelry sales.”

According to traders, daily demand for gold currently hovers around 30 kg. They said daily demand hovered above 45 kg a day during the same period last year.
Meanwhile, price of silver has also gone down by Rs 25 per tola over the past fortnight. On Sunday, silver was traded at Rs 775 per tola.

Source: Republica