Gold Price in Nepal falls to Rs.50,500 per tola

KATHMANDU, NEPAL

Gold price went down by Rs 2,500 per tola (11.664 grams) on Sunday compared to price recorded on June 11 when bullion dealers last fixed gold and silver prices.
Bullion traders returned to business only on Saturday, ending their 10-day protest. They were on warpath, demanding that the government incorporate their suggestions in the market monitoring guidelines and not initiate action against jewelers who were found cheating consumers during market monitoring conducted by the government.

On Sunday, the yellow metal was traded at Rs 50,5000.
Tej Ratna Shakya, past president of Federation of Nepal Gold and Silver Dealers´ Association said that the drop in gold price is in line with the international price drop.
“Ten days ago, gold price was hovering over US$ 1,344 per troy ounce in the international market. Now, it has gone down to $1,276.19 per troy ounce,” he said, adding, “Had rupee not weakened to this level, gold price would have come down below Rs 50,000 per tola.”

According to Reuters, gold price went down to $1,276.19 per troy ounce on Thursday - the lowest since September 21, 2010. “Gold prices plunged over 5 percent to the lowest, leading a global market rout one day after the US Federal Reserve gave its most explicit signal yet that it plans to wind down the era of easy money,” said Reuters.

According to Nepal Bankers´ Association, commercial banks have around 300 kg of gold in stock as bullion dealers did not purchase the yellow metal for 10 days because of their protest. Banks did not release gold on Sunday as international market is closed on the day.
Meanwhile, two federations of gold, silver and gems dealers are preparing to start issue recommendations for gold purchase from Monday. “We have decided to issue recommendation to wholesalers as per their need as commercial banks have enough gold in stock,” said Ramesh Maharjan, president of Federation of Nepal Gold, Silver, Gems and Jewelry Association.

As per the provision of Nepal Rastra Bank, traders can issue recommendation for the past stocks but cannot issue recommendation for the future needs. “As we can issue recommendation for all the accumulated gold, there should not be any problem in getting gold from banks, said Shakya, projecting that price will drop further down. “International market trend shows, gold price is on the decline.”

As the market opened after a hiatus of 10 days, traders said demand for gold climbed to as high as 40 kg on Sunday.
On Sunday, price of silver also went down by Rs 50 per tola to Rs 825 per tola.

Source: myrepublica, 24th June 2013
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Jewellery Shops in Nepal still remain closed for the 9th Day

KATHMANDU, NEPAL

Nepali consumers did not get to buy gold despite the international price of the yellow metal dropping to the lowest in the past two and half years. The domestic price of gold has not even been fixed with the traders shutting down their shops for the past one week protesting the government’s action against cheating traders.

They have more reasons to not open their shops due to the fall in price of gold internationally. The traders, who were complaining that the government did not supply enough gold when the price was high, have not even bought gold from the banks now. The international price of gold dropped by 3.4 percent on Thursday to US$ 1,304 per ounce (28.349 grams), the lowest in the past 30 months. The price has fallen as the investors opted for government bonds instead of gold after the US Federal Reserve Bank changed its interest rates. The fall in international price ahs also affected the India market with the price falling by IRs 400 per 10 grams to IRs 28,000.

The Nepali price would have been fixed at around Rs 52,000 per tola (11.663 grams) but it has not been fixed since last Wednesday due to the ongoing protest by traders. The Nepal Gold and Silver Dealers’ Association fixes the daily price of gold and silver based on the international price. It has not set the price after fixing it at Rs 53,000 per tola on June 11. Transaction of gold and silver and other metals and gems has been brought to a grinding halt after the Nepal Gold and Silver Dealers’ Association and the Nepal Gem and Jewelry Association shut down the shops on June 12 to put pressure on the government to not take action against the traders that were found to be cheating during monitoring.

The dispute between the government and the traders had also started once the price started to fall drastically. The government had started monitoring after the traders did not sell gold when the international price fell significantly in the third week of April. The entrepreneurs have been protesting ever since. General Secretary of the Nepal Gold and Silver Dealers’ Association Manik Ratna Shakya claimed that the consumers have not been able to buy gold at the decreased price due to the government’s apathy. “We are ready to open the shops if the government were to meet our demands,” he said. There has been no dialogue after the entrepreneurs put an unreasonable demand of ending monitoring. The government is not in a mood to step back as the traders have technically demanded that the cheaters should not be punished.

Government officials said that discussions can be held about the standards for trading of gold and monitoring if the entrepreneurs were to come for dialogue opening the shops. “There will be no dialogue until they open the shops,” Director General of the Department of Commerce and Supply Management Narayan Prasad Bidari sated. “We are ready to hold dialogue about the monitoring standards while continuing the process of action,” he added. The government had monitored 10 jewelry stores in Kathmandu Valley in April and May. The entrepreneurs have been protesting after the government initiated action against three of those involved in serious offenses.

Source: Karobar Daily, 20th June 2013
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