Traders say gold became dearer in the domestic market as the yellow metal has been rallying in international market. Gold was traded at US $1677 per troy ounce during early trading on Monday, gaining $3.5 per troy ounce compared to Sunday.[break]
“We were forced to revise gold prices upwards as our import cost has increased in line with the international bullion market,” Diyesh Ratna Shakya, secretary of Nepal Gold and Silver Dealers´ Association (Negosida), told Republica.
Gold price has been on the rise for the past four months as investors are turning to safe haven on the back of growing volatility in stock markets.
Traders fear gold´s rally will hurt their business as the yellow metal is slowly going beyond the reach of middle-class customers. One such trader is Pramod Ratna Shakya of New Road-based Tejmin Jewelers who feels glittering gold is turning away buyers ahead of the festive season. “It will be difficult to sustain our business if sales continued take a nosedive during the festive season,” he added.
Demand for gold generally increases during major festivals like Teej, Dashain and Tihar when the demand for the yellow metal hits peak.
The price of silver also set a new record of Rs 1,130 per tola in the domestic market on Monday. Silver was traded at Rs 1,115 per tola on Sunday.
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