Saturday, 19 September, 2020

Gold transaction goes up as wedding season beckons


By A Staff Reporter
Kathmandu, Nov. 30: After a long dull period in which gold transaction was very low, the local bullion market has started witnessing a surge in transaction, thanks to the arrival of wedding season.
“The daily demand of gold now has reached to 25 kilograms at present in the local market which is satisfactory for the gold entrepreneurs because the gold transaction was almost nil for the last four months,” said Tej Ratna Shakya, special member of Federation of Nepal Gold and Silver Dealers’ Association.
The gold business in the local market was affected from the beginning of the current fiscal year due to increase in its price, he said.
He, however, said that the demand of gold was almost half during this wedding season compared to last year’s season when the demand of gold was 40 kilograms daily last year.
The significant increment in the gold price attributed to decrease its demand even in this wedding season, he said, adding that the consumers were buying gold as per their requirement.
“Fresh gold demand stands at only 20 kilograms daily and the use of around 5-6 kilograms of gold are done on recycled basis as many consumers make new jewelries by recycling their old ones,” he said.
The price of gold reached to Rs. 71,600 per tola (11.66 grams) in the local market at present while it was around Rs. 60,000 a year ago, he said.
“The gold entrepreneurs are collecting gold from the banks as per their requirement. Now, the stock of gold having in the banks has almost finished after increasing its demand. The normal supply of gold by the banks is covering local demand,” he said.
The commercial banks are importing around 20 kilograms daily as per the quota of Nepal Rastra Bank (NRB).

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