Seesawing gold prices jumped Rs
1,000 per tola on Monday to reach Rs 52,200. According to the Federation
of Nepal Gold and Silver Dealers’ Association (Fenegosida), the yellow
metal soared due to rising prices in the international market. On
Sunday, gold traded at Rs 42,200 per tola (11.664 gm).
Global gold prices rose 1.7 percent to a one-month high on technical buying after the US dollar slipped, but the precious metal is still down more than a fifth this year, reported international news agency Reuters.
“In the past two days, gold has become dearer by $27. This is why the market price of gold has increased in Nepal,” said Tej Ratna Shakya, immediate past president of Fenegosida. He added that international gold prices had been fluctuating widely, and that the trend in the next couple of days would show the price level to be maintained in the domestic market in the near future.
Despite the price increase, the domestic bullion market is likely to witness minimal impact. Gold sales usually remain sluggish during the period mid-July to mid-August with the people being busy in agricultural activities. “Normally, people do not buy gold during this month.
This period is considered to be the slowest month for bullion traders,” said Shakya. The ending of the wedding season in mid-July too has contributed to the slump in sales, he added.
Bullion traders said that demand for the precious metal stands at 25-30 kg daily. The government slashed the gold import quota to 15 kg daily from 20 kg from this fiscal year. Traders said demand would exceed 40 kg daily once the current slow season ends.
With the beginning of the festive season in August and celebrations like Teej coming up when women splurge on jewellery, traders expect a gold-buying spree. “Demand will definitely rise after the end of this month. It will be very difficult to fulfil the market demand with the quantity of gold we are receiving now,” said Shakya.
According to Shree Riddhi Siddhi Jewellers, one of the biggest jewellery stores in the country, gold sales have plunged 80-85 percent compared to last month. “Since the wedding season has come to an end, business has been very slow,” said Narendra Kumar Gupta, chairman of Shree Riddhi Siddhi Jewellers. He added that there would be a correction in the market within two weeks when shoppers return to the market for Teej shopping.
“We are expecting a multifold growth in sales once people start shopping for the Teej festival,”
said Gupta. Demand for gold will rise to around 60 kg per day once shoppers return, he added. Gupta said the current amount of gold imports would not be adequate to meet the market demand during the festive season. “We cannot sell gold during the festive period. Customers will have to purchase readymade jewellery,” he added.
src : Kathmandu post
Global gold prices rose 1.7 percent to a one-month high on technical buying after the US dollar slipped, but the precious metal is still down more than a fifth this year, reported international news agency Reuters.
“In the past two days, gold has become dearer by $27. This is why the market price of gold has increased in Nepal,” said Tej Ratna Shakya, immediate past president of Fenegosida. He added that international gold prices had been fluctuating widely, and that the trend in the next couple of days would show the price level to be maintained in the domestic market in the near future.
Despite the price increase, the domestic bullion market is likely to witness minimal impact. Gold sales usually remain sluggish during the period mid-July to mid-August with the people being busy in agricultural activities. “Normally, people do not buy gold during this month.
This period is considered to be the slowest month for bullion traders,” said Shakya. The ending of the wedding season in mid-July too has contributed to the slump in sales, he added.
Bullion traders said that demand for the precious metal stands at 25-30 kg daily. The government slashed the gold import quota to 15 kg daily from 20 kg from this fiscal year. Traders said demand would exceed 40 kg daily once the current slow season ends.
With the beginning of the festive season in August and celebrations like Teej coming up when women splurge on jewellery, traders expect a gold-buying spree. “Demand will definitely rise after the end of this month. It will be very difficult to fulfil the market demand with the quantity of gold we are receiving now,” said Shakya.
According to Shree Riddhi Siddhi Jewellers, one of the biggest jewellery stores in the country, gold sales have plunged 80-85 percent compared to last month. “Since the wedding season has come to an end, business has been very slow,” said Narendra Kumar Gupta, chairman of Shree Riddhi Siddhi Jewellers. He added that there would be a correction in the market within two weeks when shoppers return to the market for Teej shopping.
“We are expecting a multifold growth in sales once people start shopping for the Teej festival,”
said Gupta. Demand for gold will rise to around 60 kg per day once shoppers return, he added. Gupta said the current amount of gold imports would not be adequate to meet the market demand during the festive season. “We cannot sell gold during the festive period. Customers will have to purchase readymade jewellery,” he added.
src : Kathmandu post
