Gold in COLD, trade grade low: Yellow metal losing price lustre, still sales sitting still
Kathmandu, October 24:
Though the domestic market is observing a sharp decline in the price of gold, dealers bemoan
that the decreasing price has not increasedtransaction volume.
Nepal Gold and Silver Dealers’ Association (NEGOSIDA) president Tej Ratna Shakya said the price of gold was decreasing but it had not led to increase in number of transactions as investors, fearing that the price decrease may continue, are not feeling secure.
After an upswing over the last six months, the domestic market is seeing a sharp downswing in the price of the yellow metal. Incidentally, gold had fallen to low of Rs 18,300 per 10 gram on May 2, this year. This time, after the peak price of Rs 21,860 per 10 gram (Rs 25,500 per tola) on October 13, the price tumbled down to Rs 19,500 per 10 gram today as the market closed.
According to Shakya, this the lowest price of gold after a gap of several months. he pointed to the economic recession as the cause of the rise and fall in price of gold, saying, “In the initial stages, gold prices skyrocketed and now they are plunging. Nothing can be done as there are lots of fluctuations. The price could fall beyond this point too.”
Shakya added, “The gold business in market has slowed down, and even the festive season could not heat things up. During Dashain, the transaction was around 10 kilos per day and even during Tihar there is not much hope of such high transaction.”
He pointed out that due to economic crisis the price of the crude oil had fallen to just over $70 per barrel while in the international market gold the price of gold per ounce was less than $713 this week. The price was $808 per ounce last week and the price fall was continuing.”
This week, gold closed at Rs 19,500 per 10 gram — Rs 860 less than the opening price, which was Rs 20,360 per 10 gram on Sunday. On Monday, there was a rise of Rs 345 taking gold to Rs 20,705 per 10 gram. The price fell on Tuesday by Rs 515 pulling gold down to Rs 20,190. The price further tumbled to Rs 19,500 on Thursday and stayed the same to close at Rs 19,500 on Friday, said NEGOSIDA. Silver this week opened at Rs 300 per 10 gram and remained stable on Monday and Tuesday. The price rose to Rs 302 per 10 gram on Wednesday but dropped four rupees on Thursday to touch Rs 298 and closed at the same mark on Friday.