Kathmandu, September 4

The recent surge in the price of gold has brought down the demand of gold jewellery in the domestic market, upsetting jewellers ahead of the festive season when the demand for jewellery is expected to rise.

As gold has become dearer in recent days, customers are deferring their plans to purchase jewellery and are waiting for the price of the yellow metal to come down, as per jewellers.

“As the price of gold has been increasing since the last few days, customers are in a wait and watch mode. A majority of jewellery outlets are recording low business since the last one week,” said Mohan Kumar Sunar, president of Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida).

Gold price has increased by Rs 1,500 per tola in the last one week. Fenegosida had fixed gold price at Rs 55,500 per tola last Monday. However, the yellow metal was traded at Rs 57,000 a tola today.

Jewellers said the demand for raw gold in the domestic market has come down to less than 20 kg per day since the last one week though there was a demand of more than 30 kg of raw gold in previous weeks.

“A week ago, we sold gold jewellery at an average rate of Rs 54,000 per tola. However, customers are approaching jewellery shops to sell their gold ornaments in recent days when gold price has surged significantly because of which jewellers have been bearing huge financial loss,” informed Sunar.

According to him, jewellers are bound to incur huge financial loss this Dashain if gold price keeps on surging in this manner. Had gold price remained stable, jewellers said that the demand for raw gold in the domestic market would be over 30 kg per day a few weeks ahead of Dashain.

Dashain is regarded as one of the best seasons for jewellery business as people, especially women, prefer to wear ornaments during the festive mood.

Like gold, the demand for silver jewellery has also plummeted in recent days due to an increase in the price of silver. As per Fenegosida, silver price has increased by Rs 30 per tola to Rs 785 a tola over a week.