Gold price near two-year low, falls to Rs 48,700 per tola
KATHMANDU, MAY 21 -
Gold price on Monday fell by Rs 400 per tola (11.664 gm) to nearly two-year low of Rs 48,700 per tola.
The precious metal was traded at Rs 49,100 on Sunday. Along with gold , price of silver also dropped to Rs 830 from Sunday’s Rs 850 per tola. The bullion price has been plummeting for the last week in line with international trends. Last Monday, gold was priced at Rs 51,600 per tola.
“The price continued its downfall on Monday too due to the drop in international market price by $14 dollar per ounce,” said Manik Ratna Shakya, general secretary of the Federation of Nepal Gold and Silver Dealers’ Associations (Fenegosida). He added the falling price has catalysed demand for the metal, creating a situation of short supply.
As per the Fenegosida, the recent hike in daily quota by the government will give some relief to increased demand. Commercial banks entrusted to import gold have started to import gold from Monday. The government last week had increased daily quota to 20 kg from earlier 15 kg after the pressure from gold dealers. Out of 20 kg, 12 kg is set aside for the Kathmandu valley and remaining 8 kg for markets out of the valley.
Gold dealers said if the price fall continues, the demand will swell further, resulting in acute shortage. According to traders, the current domestic gold demand stands at around 50 kg a day as it is also the wedding season. They said customers are buying gold fearing the price would increase further. In international market, the yellow metal was traded at $1,346 an ounce on Monday. Last month, the price had dropped to $1,320 per ounce.
In Mid-July 2011, gold was traded at around Rs 49,000 per tola, which gradually increased to Rs 62,000 per tola in September last year. Bullion dealers said the international trend indicates the price could go down or remain same for a few more days. They said sustained weakness in the overseas markets supported by strengthening dollar and share markets dragged the gold price down.
Prices Compared
Date Price Per Tola
May 20 Rs 48,700
May 19 Rs 49,100
May 17 Rs 49,750
May 16 Rs 50,000
May 15 Rs 51,200
May 14 Rs 51,700
May 13 Rs 51,600
May 12 Rs 51,900
(Source: Fenegosida/ The Kathmandu Post)
