Gold gained Rs 100 per 10 grams compared to Tuesday and was traded at Rs 25,735 on the day, as its international prices went up by 12 dollar to touch US$ 1,068 per troy ounce at the New York COMEX House, said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers Association (NEGOSIDA).
The association has attributed the rise in gold prices to the devaluation of greenback against major rival currencies.
"With dollar and stocks slipping downwards, gold has fast become alternative investment avenue and safe haven for international investors," Shakya told myrepublica.com. Apart from gold, the price of silver too broke the past record and was traded at Rs 443 per 10 grams in the domestic market. Previous high of silver was Rs 441.50 per 10 grams.
However, the rise in prices has neither brought cheers on the face of the dealers nor consumers. According to the dealers, soaring prices has put off a large number of potential consumers this Tihar. They claimed that bullion market has shrunk to half over this week.
The association had earlier forecast the business to soar over 20 kilograms a day during the festive seasons of Dashain and Tihar.
"Unfortunately, the sales has nosedived to less than 10 kg a day,” said Shakya.
Worse still, the domestic bullion market might record a further downturn in business. Such gloomy picture of the market is predicted based on the fact that the decline in dollar shows no sign of abating.
"The US has neither announced new stimulus intervention nor the market portrays good signs. There is simply no strong ground to believe that dollar will bounce back anytime soon," said Shakya, elaborating that the prices of gold could soar further in the international, and hence, in the domestic market.
Despite the grim picture, dealers related that they are happy that resell pressure -- a reverse business trend wherein consumers rush to sell their gold holding for profit taking -- has not mounted high. Otherwise, dealers in the past have repeatedly reeled under crisis of managing their stock and market when the prices soar sharply.
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