Gold price continues to drop

The price of gold once again dropped today to reach a year low of Rs 49,099 per tola (11.664 gram).

On the first day of trading today, the domestic market witnessed a fall of Rs 651 per tola in gold price, according to Nepal Gold and Silver Dealers' Association. On Friday, the precious yellow metal was traded at Rs 49,750 per tola in the domestic market.

The gold price is fixed in the domestic market on the basis of international market price. "A drop of $20 per ounce today in the international market has pulled the price down in the domestic market," the association added.

The international market is expected to witness a fall in gold price to $1,320 per ounce, which will further bring down the price in the domestic market, it said, adding that the strong dollar has also contributed to the lowering of the price of gold.

The price started to drop from mid-April. On April 15 and 16, prices dropped by Rs 6,300 per tola — on April 15 it dropped by Rs 3,300 and on April 16 it further plunged by Rs 3,000 — due to prices decreasing in the international market.

The price of the precious yellow metal had touched a record high of Rs 62,000 per tola in the domestic market on September 14, 2012.

 

CIAA comes into action

KATHMANDU: The anti-corruption watchdog today asked the central bank on why customers were not able to buy gold during the wedding season. The Commission for the Investigation of Abuse of Authority (CIAA) has asked Nepal Rastra Bank (NRB) to explain in three days, why there was a shortage even at a time when prices were low on the basis of complaints made by customers who said that they were not able to buy gold at the current price. Bullion traders claim that the demand in the market is far more than the supply allowed by the central bank. NRB has allowed traders to buy 20 kg of gold a day for two months — till the wedding season — till mid-July from the earlier 15 kg per day. However, with the drop in price and the wedding season, the domestic market is witnessing a shortage of gold. The demand peaks to 40 kg to 50 kg a day during the wedding season, compared to 30 kg to 35 kg a day in normal times, according to Nepal Gold and Silver Dealers' Association. CIAA has also asked the Bureau of Standards and Metrology on how to ensure quality of gold for customers.