KATHMANDU: High speculation over gold price is creating an unexpected demand for
the precious yellow metal in the international market with skyrocketing trading prices of gold.
Talking about the probable reasons for the unusual price hike of gold in the international market, Nepal Gold and Silver Dealers’ Association (NEGOSIDA) president tej ratna Shakya said there is fluctuation in the value of the dollar compared to other currencies and the dollar is getting weaker compared to the yen. Thus, investment in gold is being seen as safer than in the dollar or share market. Shakya also reasoned that as the value of Indian currency also fluctuated this week the cost of production got higher affecting the domestic trading price of gold here.
“On November 2, India sold 200 tonnes of gold but due to speculation regarding gradual increment in gold price, the gold was bought by a single buyer,” said Shakya adding that another possible reason could be the growing reverse trend of the European Central Bank. Earlier, European Central Bank used to sell gold but now it has started buying gold.
Shakya said that here gold dealers are facing reverse trend compared to the international market. Due to increase in price of gold people here are not willing to make any gold transaction as the buying capacity and the earnings of the people are still the same while compared to the international market gold is being the most secure investment in the international market.
Last year there used
to be gold transaction of 25 kg per day and the trading price was Rs 22,000- 23,000 per tola last Kartik/Mangsir, the favourable season for gold transaction due to marriage season here. Currently there is a great fall this season as gold transaction is only around 5 kilos per day, said Shakya.
Gold hit another record breaking price of Rs 31,100 per tola on Thursday, continuing at the same price today. The market this week closed today at the high price of Rs 31,100 per tola. According to NEGOSIDA, gold got traded for $1088 per ounce on Thursday, effecting a rise in the trading price of gold in the domestic market — Rs 26,665 per 10 gram (Rs 31,100 per tola). Gold this week opened at Rs 25,635 per 10 gram and remained at the same price on Monday. On Tuesday, gold priced at Rs 25,980 per 10 gram, Wednesday, it was at Rs 26,500 per 10 gram. Meanwhile, silver opened at Rs 424.50 per 10 gram and remained constant till Tuesday. Silver got traded for Rs 437 per 10 gram on Wednesday and Rs 439 on Thursday. Silver closed at Rs 439 per 10 gram today.