KATHMANDU, Oct 19: The domestic market of Nepal witnessed a surge in demand for gold during this Tihar, especially on the day of Dhanteras which marked the beginning of the festival of lights on Saturday. The demand on this particular day remained strong, despite an excessive price hike of the bullion.
According to gold traders, around 60-70 kg of gold jewelry worth Rs 1.30 billion were sold on a single day. The amount was more than double of the 25 kg import quota of gold fixed by Nepal Rastra Bank on a daily basis.
Flowers and fruits of Tihar
Arjun Rasaily, president of the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), said the quantity of gold sold on Dhanteras this year is more than the sales on the corresponding day of last year. “As per the traders’ report, the sales were up by 10 kg,” said Rasaily.
The price of gold has been accelerating mainly over the last one year due to multiple causes seen in the international market. The price increased by more than Rs 100,000 per tola during this period, as it hit a record high of Rs 258,000 per tola on Friday.
As per the FENEGOSIDA, the price of gold in the past one year has been affected by various factors including the decision of emerging economic giants like India and China to increase their gold reserves. Likewise, the depreciation of the Indian currency against the US dollar and growing concerns for BRICS currency also impacted the gold price.
“Fearing that the price could surge more in future, investors turned to the safe haven even at skyrocketing prices at present,” said Manik Ratna Shakya, immediate past president of the FENEGOSIDA.
Along with gold, the price of silver also increased to hit a record high price of Rs 3,350 per tola in Nepali market. The demand for silver also surged four times on Saturday. According to the FENEGOSIDA, around 1,500 kg of silver was sold on Saturday compared to 300-400 kg in previous years.
