Gold trade lowest even in Teej festival season

By A Staff Reporter,Kathmandu, Sept. 9: Gold business has remained sluggish even on the eve of Teej festival this year.Although Teej is considered the main season when the gold trade thrives, gold traders have said that the daily trade of gold is hardly 10 kg this year. Until a few years ago, the Teej festival used to be the main time for Nepalis to buy gold.

The demand for gold has remained lower even during Teej this year than in the past, said Tej Ratna Shakya, a gold trader.  “In about 60 years of experience in the gold business, I  have never witnessed this level of low gold business during the Teej festival,” he told The Rising Nepal.

The demand for gold used to surge one month before Teej and reach about 40 kg a day a week before the Teej festival. But this time, gold traders are shocked by the sharp drop in the gold demand, he said.

Except for the time of the COVID-19 pandemic, demand for gold had not decreased at this level, he said, adding that the increase in the price of gold and weak economic activities have led to the decrease in the demand for gold in the country.

Due to sluggish economic activities, the income of people has decreased which has resulted in the reduction of their purchasing power, and this has affected the gold business badly, Shakya said.

“Normally, a large number of people buy gold from their savings after meeting all their other needs, including food and clothing. However low income has made it difficult for the consumers even to meet their daily requirements. In this situation, they are unable to buy gold,” he said. The demand for gold started declining in the country after the gold price crossed Rs. 100,000 per tola.

With the fluctuating price, a tola of gold now costs Rs. 112,300. Earlier, the gold price had set a record high price of Rs. 113,600 per tola.

He said that almost a decade ago, people were not interested in gold-plated ornaments, but for the last few years, more people have started buying gold-plated ornaments for Teej because of skyrocketed gold prices. 

“As a result, the shops selling gold-plated ornaments are more crowded than the gold shops,” he said.