investment. At a time when the various sectors are facing a downfall, the gold market is still witnessing a substantial demand while the supply side has become a concern for traders. The demand is up not just for our store but for all the stores around the New Road area of Kathmandu.
As a result, more jewellery stores are being set up in the area. The number of customers looking to buy gold is also high this year comparatively,"
Pathak said.
The government had relaxed restrictions on gold imports and increased the daily import amount to 20 kilograms from 10 kilograms.
Despite the increase, traders are concerned that the amount will not be sufficient to fulfil the demand during the peak season for gold in the coming months.
"The market demand goes up to 30 kilograms a day during the wedding season with gold purchases increasing in the Tihar festival too. The demand is expected to be around 30 kg of gold during the upcoming peak seasons and the current supply will not be enough then. Moreover, the global situation is also unlikely to improve soon, as a result, people are getting more attracted to gold as a safe bet," Pathak added.
Imports of the yellow metal have also increased compared to previous years. According to the data of the Department of Customs, more than Rs 22 billion worth of gold was imported in the fiscal year 2022-23, of which Rs 3.65 billion worth of gold was imported within the first two months alone.
In the first two months of the current fiscal year, gold imports increased alongside demand and amounted to Rs 4.12 billion.
According to the rate list of FeNeGoSiDA, before the market was closed for the Dashain festival, gold was traded at Rs 115,500 per tola on October 20. When the market reopened on October 27, gold was priced at Rs 116,000 per tola and it surged by Rs 1,000 a tola to be traded at a new alltime high of Rs 117,000 per tola today.
As per international media, gold vaulted over $2,000 on its way to a third straight weekly gain on Friday, as an escalation in the Israel-Hamas conflict fuelled safe-haven buying, while investors awaited the US Federal Reserve policy meeting due next week. Trading volumes spiked after Israel's chief military spokesperson said its air and ground forces are stepping up operations in the Gaza Strip, amid reports of heavy bombing of the besieged enclave.
At the same time, the price of silver was fixed at Rs 1,400 per tola on October 20.
Its price was stable when the market reopened after the Dashain holidays on Friday, but went up by Rs 15 a tola to be traded at Rs 1,415 per tola today.
A version of this article appears in the print on October 29, 2023, of The Himalayan Times.
