The price of yellow metal remained stable at Rs 51,250 per tola (11.664 grams) during the festive season and gold dealers said it helped boost gold sales in the domestic market.[break]
Tej Ratna Shakya president of Nepal Gold and Silver Dealer´s Association (Negosida), said gold sales surged by more than threefold during Tihar as the festival is considered an auspicious occasion to purchase the yellow metal. "Daily sales of gold, which was confined to around 15 kg a day prior to Tihar, rose to more than 35 kg a day during Tihar," Shakya told Republica, adding that slight price moderation gave a great respite to both buyers and sellers.
Despite rise in sales during Tihar, dealers said daily gold sales is still down by 25 percent as compared to the festive season of last year due to increase in price by more than 35 percent. Gold price was recorded at Rs 38,000 per tola during Tihar last year.
Dealers say gold trading during the festival increased also because many buyers were actually preparing for the upcoming wedding season due to speculations that price would rise further.
"Gold trading increased by almost 25 percent during Tihar largely because the price of the yellow metal remained stable throughout the festival," Ravi Shrestha of New Road-based Asri Jewelers told Republica.
Traders expect gold demand to increase during the wedding season that begins from mid-November.
Meanwhile, gold price increased by Rs 1,650 per tola when market opened for trading after Tihar festivities on Sunday. The yellow metal was traded at Rs 52,900 per tola on the day. Gold was traded at $1,743 per troy ounce in international market on Friday, $87 higher than the price recorded on Thursday.
Silver trading also increased by 30 to 40 percent during Tihar, according to dealers.
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