Durga Man Bajracharya, president of Nepal Gold and Silver Dealer´s Association, Kaski, said sale of gold ornaments has dropped due to rise in gold prices. “Sales has dropped by more than 80 percent after the price of yellow metal grew by more than Rs 10,000 per tola in a month´s span,” Bajracharya added.[break]
Gold traders in Pokhara said sales, which usually picks up during festive season, dropped during the Teej festival. “The demand for gold jewelries used to grow during Teej festival in the past years. But the sale during this year´s Teej was negligible,” added Bajracharya.
Gold has been rallying in international market due to gloom in global stock market following the downgrading of US credit rating. As Nepal is dependent on imports for gold demand, any change in international prices is directly reflected in the domestic market.
The price of yellow metal had hit the record high of Rs 53,900 per tola in the domestic market on Aug 23.
According to the association, the sale of hallmark gold, however, is on the rise. “Traders and investors in Pokhara are investing heavily in hallmark gold,” said Bajracharya.
There are around 200 gold shops in Pokhara and the lake city has a demand for around 1.5 kg of gold every day.
Khem Sunar, owner of Darshan Gold and Silver Shop in Prithivichowk, sales at his shop has dropped near to nil. “I had sold 5-7 tolas during Teej last year. But sales this year is negligible,” Sunar added.
Traders fear that they might have to shut their shop if gold´s bull run continued further.
Gold price rises again
The price of the gold increased by Rs 1,100 per tola (11.664 grams) on Wednesday.
According to Nepal Gold and Silver Dealers´ Association (Negosida), the yellow metal was traded at Rs 51,300 in the domestic market on Tuesday.
The price of yellow metal was expected to come down after falling by Rs 600 per tola each on Monday and Tuesday, following positive results in global stock markets. But the prices rallied in the international market on Wednesday.
Gold price gained by $40 per troy ounce to $1834.75 per troy ounce in the international market on Wednesday, according to Negosida.
The price of silver also increased by Rs 15 per tola on Wednesday as compared to prices recorded on Tuesday. Silver was traded at Rs 1,214 per tola on the day.
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