Gold price declines by Rs. 1,600 per tola

BY A STAFF REPORTER Kathmandu, July 7: The prices of gold and silver have declined noticeably on Wednesday.

The price of gold has dropped by Rs. 1,600 per tola in the domestic market Wednesday as compared to Tuesday's price. According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of gold decreased to Rs. 96,000 per tola (11.664 grams) today compared to Rs. 97,600 of Tuesday.

Likewise, the price of silver has also decreased by Rs. 30 per tola to Rs. 1,175. Earlier on March 9, price of gold had reached Rs. 105,500 per tola in the local market.

The price of gold fell sharply on Wednesday in the local market due to decrease in its price in the international market, said Tej Ratna Shakya, gold trader and special member of the FENEGOSIDA.

According to him, with the rise in the exchange rate of the US dollar, the price of gold has come down as investors have been attracted to the dollar and the pressure to sell gold has started. "Selling pressure of gold has led to decline in its price in the international market as the international investors are encouraged to sell gold by ensuring profit," he said.

Fluctuations in the international market price has its impact in the domestic bullion market as well, he said. Gold price has dropped in the international market by US$ 42 per ounce to US$ 1,770 today, he said. 

Price of gold was USD 1,812 per ounce in the international market on Tuesday. The present scenario shows that the price of gold would decline further in the international market, he said.  "But, we cannot predict the price of gold would increase or decrease in this situation as it has been fluctuating significantly," he said.

Due to the wedding season, the demand for gold has also increased in the local market, he said.

The demand for gold stands at around 25kgs daily at present, he said.