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Gold soars to Rs 30,910
KATHMANDU, JUN 02 -
The price of the precious yellow metal skyrocketed to yet another record high of Rs. 30,910 per 10 gm (Rs. 36,050 per tola) on Wednesday amid scarcity in the local market.
Last Wednesday, the precious yellow metal was traded for Rs. 30,605 per 10 gm (Rs. 35,700 per tola) and the price had declined to Rs. 30,180 per 10 gm on Thursday. The price had steadied for four consecutive days till Monday.
"Devaluation of the Indian rupee against the US dollar and the effect of the European Union's rescue package for Greece has especially contributed to the price hike," said Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers Association. "Yesterday, we traded around 25 kg of gold. Today, we have sold hardly 10 kg due to the price hike as people are in a wait and see mood." The daily requirement of the local market is 25 kg because of the wedding season.
According to gold traders, NIC Bank, NMB Bank, Standard Chartered, Machhapuchchhre Bank, Nabil Bank and Prime Commercial Bank are engaged in importing 10 kg of gold from the international market daily.
"Maybe importing gold is not the job of commercial banks as they have not been able to import even 10 kg a day on a regular basis," said Shakya. He added that as per the provision of Nepal Rastra Bank, commercial banks should have imported around 450 kg by now, but they have released only around 370 kg in the market. Traders said that demand was expected to increase to over 30 kg per day within two weeks because of the wedding season. Meanwhile, representatives of the gold traders association are scheduled to meet with Nepal Rastra Bank governor Yuvraj Khatiwada on Sunday to discuss the demand and supply of gold in the local market.
Shakya said that as the commercial banks had not been able to address the demand of the local market by importing gold in low quantities, they would urge the central bank to make a new provision to allow gold traders to import at least 20 kg of gold daily.
Day Price per 10 gm Price per tola
June 2 Rs. 30,910 Rs. 36,050
June 1 Rs. 30,435 Rs. 35,500
May 31 Rs. 30,180 Rs. 35,200
May 26 Rs. 30,605 Rs. 35,700
Posted on: 2010-06-03 07:45
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