Nepal | March 30, 2020

Plummeting gold price provides respite to domestic jewellers

Himalayan News Service

Kathmandu, December 1

Domestic jewellers, who witnessed tepid business during the festive season this year due to continuous rise in gold price, are getting some respite in recent weeks after the yellow metal started losing its lustre.

November 2 Rs 57,300

Gold price has come down by Rs 3,300 per tola in the domestic market in the last one month, in line with the yellow metal taking a hammering in the international market. This, in turn, has helped push jewellery business up by more than 10 per cent compared to the festive period, domestic jewellers say. Similarly, the beginning of the wedding season in November has also contributed in boosting sales, according to them.

As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold price plummeted by Rs 600 a tola in the domestic market today to Rs 54,000 per tola. While the price of precious metals was not revised between the period of October 28 to November 1 as the country observed Tihar festival. The price of the yellow metal was set at Rs 57,300 per tola on November 2.

Gold price stood at $1,171.90 per troy ounce in the international market today.

“It’s been a few weeks that gold demand has surged in the market. There is a demand of almost 30 kilogram of gold in the market these days,” FeNeGoSiDA President Mani Ratna Shakya said, adding that jewellery outlets across the country are receiving more customers following tumble in gold price.

Following increase in jewellery demand, jewellers said that domestic market is currently facing scarcity of raw gold and have urged the government to increase import quota of gold for banks.

December 1 Rs 54,000

“The market demands 30 kilogram of gold per day today while the government supplies only 15 kilogram on a regular basis. This mismatch between supply and demand is promoting gold smuggling in the country which needs to be addressed by increasing the gold import quota,” added Shakya.

Currently, Nepal Rastra Bank (NRB) — the central monetary authority — allows different commercial banks to import 15 kilogram of gold per day on turn-wise basis.

Meanwhile, Deputy Governor of NRB Chinta Mani Siwakoti, a few days ago at a public programme, had said that the central bank would look into the prospects of increasing import quota of gold as per demand to curb gold smuggling in the country.

A version of this article appears in print on December 02, 2016 of The Himalayan Times.

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