Gold price slides further; reaches Rs 49,100 per tola

KATHMANDU, MAY 20 -Gold price has continued to drop further, pushing up the demand in the local market. The price of the precious yellow metal dropped by Rs 650 to reach Rs 49,100 per tola (11.664 gm) on Sunday. The metal was traded at Rs 49,750 per tola on Friday. The local price set by the Federation of Nepal Gold and Silvers Dealers Association (Fenegosida) is based on Friday’s closing price of $1,360 per ounce in the international market.

As an impact of the sharp fall of Rs 6,300 in two days, the gold price had declined to Rs 49,500 per tola on April 16. Last Sunday, the yellow metal was traded at Rs 51,900 per tola. The price of silver has also declined by Rs 5 to Rs 855 per tola.

Gold dealers said the price continued to fall with investors in international market diverting their interest from gold and the dealers expect the price to go further down for a few more days. “The price in the local market is in downward momentum due to the impact of decline in international market porce,” said Manik Ratna Shakya, general secretary of Fenegosida.

With the price going down, the demand of the precious metal has increased in local market. Normally, when the price goes down, customers throng to jewellery stores to buy gold items.  However, with high demand and low supply, black marketing is thriving in the domestic market, traders said. The seizure of 16 kg gold by the police last week is an example. The demand is further fuelled by the ongoing wedding season. The demand has gone up to around 50 kg a day from normal 30 kg per day.


After gold dealers demanded the government to increase the daily quota amid increasing demand, the Nepal Rastra Bank (NRB) last week increased the quota to 20 kg per day from earlier 15 kg. However, Shakya said the increased quota of gold is yet to arrive in the market.

Gold price in international market, that generally guides the price trend in the domestic market, fell for the seventh straight session on Friday as the dollar strengthened and investors cut exposure to the metal, sending holdings in exchange-traded funds to their lowest in four years, according to reports. Gold is less than $50 away from the two-year low hit in mid-April when the price declined to $1320 per ounce.

CIAA seeks clarification from NRB on gold shortage

KATHMANDU: The Commission for Investigation of Abuse of Authority (CIAA) on Sunday sought clarification from the NRB on the shortage of gold being faced in the local market. It has directed the central bank to give reason why customers are not being able to buy gold at the reduced price in line with international market, and a solution to the shortage within the next three days. The anti-graft body has also directed the Nepal Bureau of Standards and Metrology to come up with measures to make the quality and weighing of gold reliable. The move has come after a government monitoring team last month found three jewellery shops in the Kathmandu valley cheating on customers in quality and weight in gold and silver jewelleries.