In an effort to resolve the problems in the gold market, the mechanism was set up recently at the initiative of FNCCI with representation from Nepal Gold and Silver Dealers Association (Negosida), Nepal Gems and Jewelry Association (NGJA) and Nepal Gold and Silver Artists Association (NGSAA). [break]
“In response to our request Friday, FNCCI is completing guidelines for the mechanism by Sunday as we, the members of the mechanism, failed to come to a consensus over the contents of the guidelines,” said Tej Ratna Shakya, president of Negosida.
Prices of gold and silver have fluctuated in the market for last couple of weeks due to lack of single pricing system.
The last three meetings of the mechanism which were expected to end the dispute among its constituents over trading in gold and the pricing arrangement, ended without any breakthrough.
The mechanism was authorized to fix prices of gold and silver, make recommendations regarding procurement of gold by members of gold dealers associations and raise other pertinent issues.
Negosida has been sticking to its previous stance to stop purchase of gold from banks and against fixing prices of gold and silver until the guidelines are framed, while NGJA and NGSAA are for purchasing the yellow metal and setting the prices even if finalization of the guidelines is delayed.
Dispute has emerged among traders after Nepal Rastra Bank designated NGJA and NGSAA also to make recommendations for the purchase of 25 percent each of the total of 10 kg of gold to be sold by banks per day. Traders have been demanding and lobbying for the release of at least 20 kg of gold per day to meet the gold demand in the market.
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