The yellow metal was traded at Rs 50,300 per tola on Oct 4, the last trading day before the Dashain holiday.[break]
Gold dealers have attributed rise in gold prices to international price rally. As Nepal depends on imports to fulfill domestic gold demand, any change in prices in international market is directly reflected in the domestic market.
Gold has glittered mainly due to the ineffective implementation of $1.5 trillion package introduced by the US government to overcome its debt crisis, according to dealers.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers´ Association (Negosida), said gold price volatility is forcing many traders out of business.
“The demand for gold during Dashain festival decreased by 80 percent due to factors like price volatility and decline in people´s purchasing power among others,” Shakya added.
Demand for gold during Dashain dropped to as low as 15 kg a day from average daily demand of 40 to 45 kg per day, according to the association.
Price of silver, however, remained stable at Rs 1,120 per tola.
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