Saturday, July 6, 2019

Gold demand drops due to price hike

Demand of precious yellow metal – in the domestic market – has gone down by 45 per cent despite the weeding season.
Due to the significant rise in the gold prices in the market, the demand has been affected in the wedding season too, said former president of Federation of Nepal Gold and Silver Dealers’ Association (Fenegosida) Tej Ratna Shakya.
“Earlier the market demand used to be around 25 kilo per day during the wedding season, he said, adding that the the demand has dropped down to by 45 per cent – compared to last year’s wedding season – to around 10 to 12 kilo a daily. “Not only the demand has dropped but the people are also willing to sell their gold ornaments instead of buying new jewelries due to price hike.”
Gold traders are not willing to open their shops due to increasing gold jewellery sellers in the high season, he added. “The domestic market is witnessing some 25 kilo of old gold jewelleries trade per day at present compared to only 5 kilo in before the price increased.”
Though, the price of gold has remained almost stable at Rs 65,000 per tola (11664 gram) in the domestic market this week, the price of gold might go as high as Rs 80,000 per tola due to US-China trade dispute, which has pushed the price of precious yellow metal in the international market. The change in the price of gold in the international market directly changes the price in the domestic market that fixes price everyday based in the international market.

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