Gold was traded at Rs 48,700 per tola on Monday, down from Sunday´s Rs 49,100 per tola.
Mani Ratna Shakya, president of the Federation of Nepal Gold and Silver Dealers´ Associations, said gold price continued to drop in the local market due to fall in prices in the international market. Gold prices have lately been taking a dip in the international market as investors moved away from the yellow metal to other assets. [break]
Bullion traders say continuous fall in gold prices has made the commodity even more attractive to domestic consumers.
“Though more people are attracted toward gold, we have not been able to cater to the demand as banks have not been supplying gold since May 15 citing technical problems after the government increased the quota to 20 kg from 15 kg a day,” said Shakya.
Following this, delegations of gold traders from Kathmandu and Lalitpur district chapters met with senior officials of the Federation on Monday and complained that they have not been able to open their shops due to acute shortage of gold.
“We have convinced them saying that supply situation would improve once banks release gold,” said Shakya. However, one banker outright refuted claims that banks have temporarily halted gold supply after per day quota was raised to 20 kg.
Nepal Rastra Bank last week allowed banks to import and distribute up to 20 kg of gold per day, from 15 kg in the past, considering the wedding season when demand for yellow metal rises.
However, gold traders have voiced concern that 5-kg hike in daily quota during wedding season is not enough to meet the current market demand. To address this problem, they have urged the government to raise hand-carry import quota.
Currently, the government allows Nepalis, who have stayed abroad for at least six months or more, to bring in up to 400 grams of gold, whereas a few years ago up to 10 kg of yellow metal could be imported under the baggage regulation.
“We have requested the government to allow Nepalis abroad to bring in more gold so as to curb illegal trading and black marketeering,” said Shakya.
The ongoing shortage of yellow metal has now drawn the attention of the Commission for Investigation of Abuse of Authority as well.
The anti-corruption watchdog on Sunday sought clarification from Nepal Rastra Bank in this regard and has directed it to find out why customers are facing problems buying gold at cheaper prices.
Meanwhile, the Federation has said gold price could slide by another Rs 400 to 500 per tola on Tuesday.
“If the situation persists, most of the traders may close their shops,” Shakya told Republica.
Silver price drops to 27mth low
KATHMANDU: Silver price fell by Rs 20 per tola (11.664 grams) on Monday to 27-month low of Rs 830 per tola. Silver price had last stood at this level on February 2, 2011.
With the drop in price, demand for the commodity has also gone up in the local market“ "But the supply situation of silver is smooth as even traders can import the commodit”," said Mani Ratna Shakya, president of the Federation of Nepal Gold and Silver Dealers´ Associations.
Related story
Gold price rises by Rs 500 per tola, reaches all-time high of R...
