Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association (Negosida), said they were compelled to fix the price of the yellow metal according to transaction price in the market due to shortage of gold in the market.[break] Earlier, the association used to fix price on the basis of import price set by the banks.
Citing black marketing of gold, the central bank has directed importer banks not to sell gold to traders from Wednesday.
“We were surprised to know about the central bank´s directives from the bankers. The directives came at a time when were lobbying with the government to increase the quantity of gold sold by the banks to 20 kg a day from the existing 10 kg,” Shakya said.
Before the central bank asked banks to stop selling gold to traders, importer banks were selling 10 kg of gold per day to the wholesalers on the recommendations of Negosida.
Nepal Rastra Bank´s recent monetary policy clearly states that gold would be made available to the traders as per the demand.
According to Negosida, price of gold touched an all time high of Rs 31,250 per 10 grams or 36,450 per tola (11.664 grams) on Wednesday despite nominal changes seen in prices in the international bullion market. Gold was selling for $1224.5 per troy ounce in the international market on Wednesday.
The association had fixed the price of silver in the local market at Rs 489 per 10 grams.
Gold had hit the previous high of Rs 31,035 per 10 grams or Rs 36,200 per tola on June 8 amid economic crisis in Greece. Gold was selling for $1,249 per troy ounce on June 8.
“Price of gold is Rs 500 per 10 grams higher than what the price should have been as per international prices,” Shakya added. He said gold price will continue to go up in the market if the central bank continued its restriction on sale in the coming days as well.
“Customers, who were already facing skyrocketing prices, have been compelled to pay higher on the eve of festive season due to shortage in the market,” Shakya added.
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