Over the last week, gold become cheaper by more than Rs 1,300 per tola in the local market.[break]
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (NEGOSIDA) told Republica that gold has become cheaper in the domestic market as investors are gradually shifting from the bullion market to invest in Euro, which has been getting stronger.
“Amid weakening US dollar and strenthening Euro investors are now less interested in investing in gold leading to price decline. Gold has become cheaper in local market,” said Shakya.
Price of gold had dropped to US$1712 per troy ounce (31.10 grams) on Saturday in international market from US$ 1730 recorded at earlier trading.
Traders, however, said gold would become cheaper as the wedding season is drawing to a close in India -- the largest buyer of gold. Situation in Nepal is also similar. Most of the Nepali customers have almost completed their shopping for this year´s wedding season and the demand is likely to go down further.
“Daily demand for gold has decreased to around 30 kg per day from 40-50 kg per day a couple of weeks ago,” said Shakya. He said while there is a limited daily supply of 15 kg gold in the market, illegal imports from India and China for last few months have kept the supply afloat.
“Though, we have no information about the exact quantity of illegally imported gold, a sizable amount of gold has been entering from India and China,” he added.
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