Traders reduced the difference in prices in Nepal and India to Rs 600 per 10 gram from Rs 1,025 recorded a day earlier. Four traders imported 45 kg of gold from Dubai on hand carry on Tuesday, making payment through Telegraphic Transfer (TT). [break]
“With the fresh import of gold and low demands due to the end of the wedding season, price will go continue to go down in domestic market, narrowing down the difference in prices in Indian and Nepali market,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association. “The improved supplies will also discourage the trend of creating artificial shortage.”
Unlike in the past, local traders lowered gold prices though the price of the yellow metal has remained unchanged in international bullion market for the last two days. Gold is selling for $1,066 per troy ounce in international market on Tuesday.
Amid deepening shortage and rising demand due to wedding season, gold that holds significant chunk in wedding expenses had become dearer to touch Rs 28,120 per 10 gram - the highest price in recent weeks.
The government has been imposing restriction on gold imports from the last month to control mounting trade deficit due to huge imports of gold. The government took the decision after the imports couldn´t be controlled even after imposing the provision of bank guarantee or Letter of Credit worth 40 percent of total value of gold.
In the past, traders used to import gold with Letter of Credit or bank guarantee worth 10 percent of total amount.
Official data shows that gold imports reached Rs 33 billion in the last six months ending mid-December, 2009.
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