Daily demand for gold, which had soared to 30 kg until the second week of March, has dropped to around 15 kg at present. "Sale of gold and golden jewelries have been dwindling with the end of wedding season," Mani Ratna Shakya, president of Federation of Nepal Gold and Silver Dealers Associations, said.
According to traders, demand for gold jewelries soars in the market from mid-January until mid-March when weddings and other social occasions take place. "The demand will fall for few more weeks. It will improve after the next wedding season begins from mid-April," said Shakya.
Traders also attributed drop in demand for gold jewelries to increasing trend of recycling old jewelries rather than buying new jewelries among consumers. "As gold price is fluctuating, consumers prefer to recycle old jewelries into new designs instead of making fresh purchase," Tej Ratna Shakya, immediate past president of the federation, told Republica.
Gold was traded at Rs 50,650 per tola (11.664 gram) on Monday.
Meanwhile, office-bearers of the federation have criticized a recent provision introduced by Nepal Rastra Bank (NRB) which allows commercial banks to directly sell gold to dealers. "Earlier, commercial banks used to sell gold to dealers on the recommendation of the federation. Now, they can sell directly to traders," President Shakya said. "Commercial banks are selling gold to dealers in a haphazard manner to clear their stock."
He also said such a haphazard distribution will create negative impact in the market.
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