KHATMANDU: The tumbling price of gold in the domestic market in recent days has cheered domestic jewellers ahead of the wedding season that starts from mid-April. As per traders, they have been recording brisk business in recent days following the plummeting gold price.
“As gold has become relatively cheaper, customers are placing new orders for gold ornaments for wedding and other ceremonial occasions that will start from mid-April,” said Mani Ratna Shakya, immediate past president of the Federation of Nepal Gold and Silver Dealers’ Association.
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Gold price has been tumbling in the domestic market following the decline in the rate of yellow metal in the international market. Gold has lost its lustre by Rs 1,300 per tola over the last one month in the domestic market. Gold, which was priced at Rs 55,500 a tola on February 21, was available at Rs 54,200 per tola today (March 21).
However, traders believe that the current drop in gold price is temporary and will go up, especially following indications from the US Federal Reserve it would hike interest rate.
“Gold price is falling due to different announcements from the American President Donald Trump that has made US dollar unstable. As a result of the instability of the greenback, few investors have shifted to gold in the recent days,” Shakya said.
As per jewellers, the demand for gold in the domestic market currently stands at 35 kg per day despite the month of March being regarded an ‘off-season’ for bullion business. “With relatively stable gold price and increased supply of raw gold in the market, jewellers are expecting good business from mid-April to May-end. The demand is expected to reach about 50 kg per day then,” said Mohan Kumar Sunar, president of the Federation.
Due to consistent demand from traders, Nepal Rastra Bank had recently hiked gold import quota for commercial banks to 20 kg per day from 15 kg per day at normal times and to 25 kg a day during festive seasons and ceremonial occasions.
