By A Staff Reporter
Kathmandu, Feb. 20: Price of gold fell by Rs. 1,000 per tola in the domestic market on Friday.
The precious yellow metal traded at Rs. 88,200 per tola (11.339 grams) today while it was traded at Rs. 89,200 per tola on Thursday. Price of silver has also declined. Silver, which was traded at Rs. 1,335 per tola on Thursday, traded at Rs. 1,305 per tola today.
According to the Federation of Gold and Silver Dealers’ Association, the price of gold has been continuously declining for the last two weeks.
Selling pressure of the gold in the international market has contributed to the decline in its price, said Tej Ratna Shakya, a gold trader and a distinguished member of the Federation of Nepal Gold and Silver Dealers’ Association.
Price of gold decreased by US$ 17 per ounce to US$ 1,866 in the international market today, he said.
As per the present scenario of the international market, gold price would decrease further, he said.
"International investors are willing to purchase silver by selling gold expecting the price of silver will increase as the new US president is planning to introduce 'Green Valley Project' which requires silver in a large quantity," he told The Rising Nepal.
The price of gold had dropped by Rs. 2,600 per tola within this week. It was sold at Rs. 90,800 per tola on Sunday.
The price of gold had reached a record high at Rs. 103,500 per tola in Nepal on August, 2020.
Shakya, however, said that the demand of gold has been growing in the local market due to decrease in its price.
"Gold traders are facing a shortage of gold in the market after its demand increased limited to 10 kilograms," he said.
The Nepal Rastra Bank (NRB) has allowed commercial banks to import only 10 kilograms gold a day.