Gold price declines by Rs. 1,300 per tola

By A Staff Reporter,Kathmandu, Jan. 5: The prices of gold and silver have decreased noticeably on Thursday.

The price of gold has dropped by Rs. 1,300 per tola in the domestic market Thursday as compared to Wednesday’s price.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of gold decreased to Rs. 119,500 per tola (11.664 grams) today compared to Rs. 120,800 of Wednesday.

Likewise, the price of silver has also decreased by Rs. 30 per tola to Rs. 1,420

Earlier on December 28, price of gold had reached Rs. 122,000 per tola in the local market.

The price of gold has decreased sharply on Thursday 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, 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 a drop in its price in the international market as the international investors are encouraged to sell gold by securing profit," he said.

Fluctuation in the international market price have its impact on the domestic bullion market as well, he said.

Gold price in the international market has decreased by US$ 21 per ounce to US$ 2,044 today, he said. Price of gold was USD 2,065 per ounce in the international market on Wednesday.

Due to price hikes of gold in the market over the months, demand for gold has remained low in the local market.