On Thursday, the market had opened at Rs 25,380 per 10 grams, up from Rs 25,000 on Wednesday. The gold price has soared by Rs 163 per gram over the week, according to data with the Nepal Gold and Silver Dealers Association (NGSDA).
On Friday last week, gold was traded at Rs 23,835 per 10 grams.
NGSDA said that demand for the yellow metal has nosedive subsequent to the rise in price. “Sales have dropped to 5 kilograms a day, which is a mere 20 percent of normal demand,” said Tej Ratna Shakya, president of NGSDA.
He told myrepublica.com that consumers were now meeting their needs through recycling of old jewelry and other gold holdings.
Despite the fresh capital gains opportunity, the trend in the market suggests that people are not on a selling spree. “A large number of people sold their gold holdings when the price touched Rs 25,000 per tola. A few others are waiting for the time being, possibly anticipating further price rises,” said Shakya.
NGSDA has projected the domestic price to soar to Rs 30,000 per tola in the near future.
“Gold will touch Rs 30,000 per tola as soon as the international price climbs to US$ 1,000 a troy ounce,” said Shakya. On Thursday, gold was traded at US$ 979.30 per troy ounce in the international market. Last week, it had traded at US$ 941.
International gold prices have risen due to a weakening of the greenback against major rival currencies. The deep gloom in global stock markets has also pushed up the price of the precious metal. On the domestic front, a weakening of Nepali currency vis-à-vis the US dollar likewise contributed to higher gold prices.
Given the present global financial situation, NGSDA said that high gold prices are here to stay, and consumers may witness another record high soon.
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