Gold Price slides to Rs.54,000

KATHMANDU, NOV 22 -
Local bullion prices cooled down in a reflection of international trends with gold dropping Rs 1,600 per tola. The Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida) on Thursday set the price of the yellow metal at Rs 54,000 per tola (11.664 gm). On Wednesday, gold traded at Rs 55,600 per tola.

Similarly, silver became cheaper by Rs 40 per tola. Silver traded at Rs 865 per tola on Thursday, down from Rs 905 on Wednesday.

Meanwhile in the international market, gold traded at US$ 1,283.17 per ounce on Thursday. World prices stood at US$ 1,247.53 per ounce on Sunday. Fenegosida maintained Sunday’s prices till Wednesday since the Nepali market was greatly affected by the Constituent Assembly (CA) polls. “As we fix the rates based on international trends, prices have dropped in the market here,” said Mani Ratna Shakya, president of Fenegosida. “As prices in the international market remain volatile, we cannot predict local prices until tomorrow morning.” Meanwhile, the sharp fall in gold prices is expected to bring smiles to wedding shoppers. Gold sales jump during the marriage season which lasts from mid-November to mid-December due to large purchases to make bridal jewellery.

Traders say that the market witnesses a growth of over 100 percent during the month compared to normal times. Demand remains on the high side until mid-February. “Due to the CA election, people were too preoccupied to visit the bullion market to buy gold . We are expecting a huge rise in sales from now onwards,” said Shakya. Demand for the precious yellow metal is certain to remain high throughout the country, he added.

However, political stability will play a crucial role in the performance of the bullion market, he said. “Demand will definitely be higher. However, if there is political stability, it will be much greater than expected,” said Shakya.

While the usual daily requirement of gold in the local market is estimated to be 15-20 kg, it jumps to more than 40 kg during the period mid-November to mid-December.

Considering the surge in demand during this time of the year, Nepal Rastra Bank has permitted banks to import 20 kg of gold daily until mid-December.

The central bank allows banks to import only 15 kg of gold daily during other times.

Source: ekantipur.com, 22/11/2013

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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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