The price of gold increased by Rs 900 per tola overnight as compared to Rs 53,300 recorded on Monday.[break]
The yellow metal hit a new high of $1,910 per troy ounce during early trading in international bullion market Tuesday, up from $ 1,877 per troy ounce recorded a day earlier.
“Gold is marching into the uncharted territory in the international bullion market mainly due to the Venezuelan government´s plan of withdrawing its gold held at American and European banks,” said Manik Ratna Shakya, general secretary of Nepal Gold and Silver Dealers´ Association (Negosida).
Gold traders say they are not happy with continuous gold prices as glittering gold is driving consumers away. They say transaction has dropped by as much as 80 percent this festive season as compared to the last year.
Uttam Shakya, owner of Surya Bahadur & Sons Ornaments Center at Wotu, said gold traders will have to shut their shops if gold continued to glitter at this rate. “People investing on Hallmark gold sell them as soon as the price increases. We´ve no option but to buy and keep that in stock despite price volatility,” he added.
Negosida General Secretary Shakya also said drop in gold transaction has forced many traders to look for alternative business.
“We had expected the price to touch Rs 50,000 per tola this festive season, but the price went beyond our expectations,” Shakya said, adding that average daily transaction has dropped to less than 5 kg a day, from 40 kg a day recorded last year.
Silver, however, is selling unchanged at Rs 1, 250 per tola.
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