Gold has lost Rs 2,300 per tola over a week in the domestic market on plunging prices in the international market.
According to the Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida), gold traded at Rs 53,700 per tola in the domestic bullion market on Sunday, down from Rs 56,000 last week. The yellow metal had hit a six-month high of Rs 57,500 per tola on March 16.
Traders attributed the tumble to global trends and a strengthening of the Nepali rupee against the US dollar.
Tej Ratna Shakya, former president of Fenegosida, said that prices were affected as investors switched to soaring stocks from gold . Gold prices had increased two weeks ago due to the crisis in Ukraine over Crimea.
“However, after the problem was resolved, investors were seen moving their money from gold to increasing equities in New
York which affects the global trend,” he said.
Gold was traded at US$ 1,294 per ounce in the International market on Sunday, the lowest since March 16, when it was priced at US$ 1,389 per ounce.
Shakya said that a rising Nepali rupee also affected good prices as Nepal needs to obtain US dollars to purchase the precious metal on the international market. On Sunday, Nepal Rastra Bank fixed the exchange rate at Rs 96.16 per US dollar.
Lowered domestic demand also affected prices. Traders said that the daily requirement of gold stands at 20 kg during normal times. “As the marriage season begins from mid-April, demand is likely to swell then,” Shakya said.
Meanwhile, silver prices also decreased by Rs 45 per tola over a week. Silver was traded at Rs 810 per tola in the domestic market against Rs 855 a week ago.
Source
According to the Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida), gold traded at Rs 53,700 per tola in the domestic bullion market on Sunday, down from Rs 56,000 last week. The yellow metal had hit a six-month high of Rs 57,500 per tola on March 16.
Traders attributed the tumble to global trends and a strengthening of the Nepali rupee against the US dollar.
Tej Ratna Shakya, former president of Fenegosida, said that prices were affected as investors switched to soaring stocks from gold . Gold prices had increased two weeks ago due to the crisis in Ukraine over Crimea.
“However, after the problem was resolved, investors were seen moving their money from gold to increasing equities in New
York which affects the global trend,” he said.
Gold was traded at US$ 1,294 per ounce in the International market on Sunday, the lowest since March 16, when it was priced at US$ 1,389 per ounce.
Shakya said that a rising Nepali rupee also affected good prices as Nepal needs to obtain US dollars to purchase the precious metal on the international market. On Sunday, Nepal Rastra Bank fixed the exchange rate at Rs 96.16 per US dollar.
Lowered domestic demand also affected prices. Traders said that the daily requirement of gold stands at 20 kg during normal times. “As the marriage season begins from mid-April, demand is likely to swell then,” Shakya said.
Meanwhile, silver prices also decreased by Rs 45 per tola over a week. Silver was traded at Rs 810 per tola in the domestic market against Rs 855 a week ago.
Source
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