YO-YOING PRICE OF GOLD: Price ups as Teej spurs demand for gold

Kathmandu, August 29:

Fluctuation in gold price in the international market led to fluctuations in the domestic market also this week.

The market opened at Rs 19,460 per 10 gram last Sunday. Due to fluctuation in the international market, the day saw two prices. In the afternoon, Nepal Gold and Silver Dealers’ Association (NEGOSIDA) fixed the price at Rs 19,375 per 10 gram.

“If the price changes by $10 upwards or downwards, NEGOSIDA reviews the price at around 2 pm,” said Tej Ratna Shakya, NEGOSIDA president. However, NEGOSIDA does not change the price after 3 pm as it would be too late for the domestic market. Earlier, NEGOSIDA used to change the price if there was a fluctuation of $5.

On Monday, the price of the yellow metal went further down to Rs 19,120. But, on Tuesday the price picked up by Rs 170 per 10 gram to reach Rs 19,290. Wednesday witnessed no change in the price of gold in the domestic market.

However, it surged to Rs 19,375 on Thursday and closed even higher at Rs 19,420 on Friday, the last day of the domestic market. There was a difference of only Rs 40 in the opening and closing price.

“The rise in the price of gold is due to the coming Teej festival of women,” Shakya said adding that the price rose despite enough supply of gold. Demand has doubled from the usual five to six kg to around 15 kg this week. “Though there was a shortage last week, there is none this week despite increased demand as there was enough supply,” he said.

Currently, Standard Chartered Bank Nepal and NIC Bank both import gold. Four others — ABC Enterprises, Nipesh Tail, Pawan Dharaniya and Shalimar Jwellers — also import gold. Some people, on their return from abroad, also bring gold but the quantity is negligible. The banks import gold after they get gold dealers’ bookings because they do not want to take risks.

Weak US currency and fluctuation in the price of crude oil led to a lot of swings in international gold price too which started at $835 per ounce and closed at the same price on Friday, said NEGOSIDA.

Meanwhile, silver opened at Rs 351.50 per 10 gram last Sunday and closed at Rs 348, Rs 3.50 less than the opening price.