A meeting of the mechanism, which was expected to end the dispute among its constituents over trading in gold and the pricing arrangement, ended without any breakthrough on Thursday. [break]
The mechanism was established last week in an effort to resolve the problems of the gold market, at the initiative of FNCCI, with representation from the Nepal Gold and Silver Dealers Association (Negosida), Nepal Gems and Jewelry Association (NGJA) and Nepal Gold and Silver Artists Association (NGSAA).
The mechanism was entrusted with setting the price of gold and silver, recommending procurement of gold for members of the associations and raising other issues pertaining to the gold and sliver market in coming days. Formulation of guidelines to manage the trade in gold is also stuck due to dispute among members of the mechanism.
At Thurday´s meeting, Negosida stuck to its previous stand to stop purchase of gold from banks and not set the price of gold and silver until the guidelines are framed. However, the other two members were for purchasing the yellow metal and setting the prices even if finalization of the guidelines is delayed.
“The mechanism has decided to entrust FNCCI with resolving the issue as we couldn´t come to any conclusion despite three meetings on how to manage the gold market,” said Tej Ratna Shakya, president of Negosida.
He said members of the mechanism would hold talks with FNCCI on Friday. Amid the prolonged dispute among gold and silver traders, consumers are in confusion as the prices set by Negosida on one hand and by the other two associations on the other have varied by up to Rs 500 per 10 gram. According to Shakya, gold hovered in the market around Rs 31,590 to Rs 32,065 per 10 gram, whereas silver was priced at Rs 515 to Rs 520 per 10 gram. However, NGJA has fixed the prices of gold and silver at Rs 31615 and Rs 521 per 10 gram respectively.
As per NRB´s recent decision, Negosida can make recommends for 50 percent of the total of 10 kg of gold to be sold by banks per day as authorized by the central bank, and the new associations can recommend 25 percent each.
Traders said black-marketeering in gold could not be controlled until the government provides at least 20 kg of gold per day to the domestic market. As per a fresh survey conducted by Negosida, the average demand for gold across the country stands at 35 kg per day. The government has set the maximum limit for gold supply at 10 kg per day, stating that gold was being sold in the black market.
Related story
Will Major General Pandey step down amid age dispute?
-1200x560-1779450784.webp)
