Nepal Gold and Silver Dealers´ Association (NEGOSIDA) attributed the price recoil to rise in hopes among international investors that Italy would soon form a new government to carry out reforms and tackle the deepening debt crisis.[break]
This rise in confidence caused safe haven demand to recede and price dropped in international as well as local markets, said a NEGOSIDA official. On the day, gold was traded at Rs 46,900 per ten grams in the domestic market.
In the international market, spot gold on Thursday dropped to as low as US$ 1,753 per troy ounce (31.103 grams) compared to US$ 1,790 of a day ago. However, prices had bounced back after dollar weakened against Euro.
Despite drop in prices, dealers complained they continued to face buy back pressure, which resulted in heavy supply of gold in the market.
While they readily bought back the supply till the first half of the day, customers who approached dealers for sales after 3 pm faced their denial.
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