If the international price is anything to go by, the yellow metal should have traded in the domestic market on Monday at Rs 52,500 per tola (11.664 grams). [break]
However, as dealers did not make due adjustment, consumers were forced to pay Rs 500 more for a tola of gold.
Dealers have consistently priced gold at Rs 53,000 per tola since last Thursday (when gold was priced $1,652 per troy ounce) though prices in the international market dipped on later trading days. On Monday, however, gold price increased in the international market.
Dealers also admit of unfair pricing in the market. "It is true Monday´s gold price should have been Rs 52,500 per tola," said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association (Negosida). He, however, blamed commercial banks for the unfair pricing.
“We could not adjust the prices in line with the international trend solely because the commercial banks -- the main supplier of gold in the market -- did not follow the international trend," he told Republica.
According to him, dealers were forced to sell the yellow metal at higher rates because commercial banks themselves sold gold to dealers at different rates. “On Wednesday, Machhapuchhre Bank sold gold at Rs 51,900 per tola, whereas NIC Bank on the same day sold it only at Rs 52,900 per tola," said Shakya.
Thanks to the ongoing wedding season, demand for gold has increased to as much as 30 kg a day. However, total supply received from commercial banks, which is limited at 15 kg a day by the central bank, is too low to fulfill the demand. That is why dealers are paying what banks are charging.
Referring to the situation, Negosida has already lodged a complaint against uneven gold pricing by the commercial banks at the central bank. "We were expecting the central bank to address our concern. Sadly, nothing happened on Monday," said Shakya.
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