The price of yellow metal has gone down ahead of the festive season, bringing relief to potential buyers.[break]
Mahedra Ratna Shakya, newly elected president of Nepal Gold and Silver Dealers´ Association´s (Negosida) Kathmandu district chapter, said increasing appreciation of US dollar against rival currencies coupled with lack of demand for worked gold were the major reason behind drop in gold prices.
Gold was traded at $1656.10 per troy ounce in the international market on Friday. The yellow metal had crossed the $1,900 per troy ounce barrier in the first week of September. Gold had hit an all time high of Rs 54,200 per tola in the domestic market on September 6.
According to Negosida sources, around half a dozen gold traders have started alternative business after they suffered huge losses due to continuous surge in prices of yellow metal earlier this month.
“Price of gold has been decreasing since last week. But there has been no increase in demand, as people are expecting the price to fall further,” said Uttam Shakya, proprietor of Surya Bahadur & Sons Jewelry shop at Wotu.
Shakya of Negosida expects prices to climb during the upcoming festive season when demand for the yellow metal in South Asia hits peak.
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