Gold price drops by Rs 2,100 to Rs 53,502 per tola in a week

Wedding bell might be more soothing for those who are planning to marry as the gold price has started looking down in the marriage season.

The precious yellow metal price dropped by Rs 2,100 per tola (11.664 gram) in a week today to Rs 53,502.76 per tola or Rs 45,870 per 10 gram in the domestic market from last Wednesday's Rs 55,602.28.

The drop in the price and also due to marriage season, the gold import that has seen a drop, however, might increase.

According to the central bank, gold import has dropped to almost by half Rs 3.56 billion in the first three months of the current fiscal year 2013-014 compared to Rs 7.06 billion in the same period of the last fiscal year. "The gold import stood at Rs 5.39 billion a fiscal year ago in 2011-12."

The traders however, claimed that gold import dropped due to heavy price hike in the international market. The precious yellow metal is priced in the domestic market on the basis of international market price. "The gold price in the international market in US dollar is converted to Nepali currency adding a little margin," according to the traders. "Though, gold price and US dollar relation is negative in the international market, it is however, positive in the domestic market," they said, adding that the price in the gold price in domestic market rises in both cases.

Gold is hovering around $1,250 per ounce in international market.