Kathmandu, January 9:

Increased gold price has caused a drop in gold transactions in the domestic market.

“The month of Poush is going to end but we have transacted sale of only 6 kg of gold. It may or may not edge up to eight kg,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (NEGOSIDA).

“This time it was lowest demand for gold. People came mainly to recycle gold jewellery, which is not transaction,” said Shakya adding that fresh gold is not available in the market as the price of gold in the international market is high. Whatever gold NEGOSIDA is using is from old stock, hence lower price in comparison to the international market. “We hope transaction rises from February,” he said.

This week, gold opened at Rs 21,650 per 10 gram. Gold priced Rs 21,565 on Monday. On Tuesday, the price of gold further decreased, taking it to Rs 21,350. On Wednesday, it increased to reach Rs 21,435. On Thursday, gold touched Rs 21,350 and closed on Friday at the opening price of Rs 21,650.

Gold closed at $852 per ounce in the international market, which was $874 per ounce last Friday. The price is fluctuating due to global financial crisis.

Meanwhile, silver opened at Rs 300 per 10 gram on Sunday. Pprice increased to Rs 303 on Monday and stayed the same till the market closed.