KATHMANDU, FEB 10 - The price of gold declined by Rs. 600 per tola (11.664 gm) in one day following the import of 45 kg of the precious metal by four traders from Dubai on Monday.

Gold was trading at Rs. 31,600 per tola on Monday. The price dropped to Rs. 31,000 on Tuesday. Prices had risen Rs. 1,500 per tola over the international market price a few days ago due to a shortage.

"The price has gone down by Rs. 600 per tola, but still the price is Rs. 600 dearer compared to the international market," said Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers Association.

"The price will go down further as traders have started to import gold through hand carry and the wedding season has also ended, but it may take at least a week to become level with the international price." According to the association, the daily average market demand stands at 15 kg.

The association had been demanding that Nepal Rastra Bank facilitate the import of gold by letting traders open Telegraphic Transfer Draft and help ease the shortage of gold.

"If we import 10-20 kg of gold though hand carry every day, the gold market will be stabilised," said Shakya.

The central bank had imposed restrictions on gold imports last month with a view to controlling the swelling trade deficit and liquidity crisis due to huge imports of gold.

 

Posted on: 2010-02-10 09:33

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