MONEY»
Gold market feels price pinch
KATHMANDU, SEP 05 -
The gold market, which is already hit by a shortage of the yellow metal and arbitrary pricing, is set to feel uncertainty for some more days with no daily bullion pricing. As there is no authentic pricing, customers are paying as high as Rs. 500 per ten gm.
Gold trading associations - Nepal Gold and Silver Art Associations (NEGOSAA) and Nepal Gem and Jewellery Associations (NEGJA) -- too have decided not to collect gold from the commercial banks or fix the daily bullion price from Sunday.
Till Friday, the two associations were fixing a daily bullion price jointly and procuring three kg of gold per day as per the Nepal Ransta Bank’s recent circular. Traders said they had stopped taking gold to pressurize the government to increase the gold import quota before the festive season started.
“We have decided not to buy gold from the commercial banks for the moment,” said Rudra Baraili, president of NEGOSAA. “As soon as we come up with a guideline, we will start procuring gold and fix the price. The guideline will be prepared by Tuesday.”
The formulation of the guideline by the Gold and Silver Management Task-Force will specify the criteria for fixing the price of gold and silver in the market.
On Sunday, the Federation of Nepal Chambers of Commerce and Industry (FNCCI) which has been trying to resolve the tussle among the gold trading associations, has also prepared and forwarded a work plan of the task-force based on a draft plan presented by all three traders’ associations.
FNCCI had collected the draft work plan of all three - Nepal Gold and Silver Dealers’ Association, NEGJA and NEGOSAA - on Friday after the associations’ meeting held on Thursday failed to come up with a concrete decision regarding formulation of the guideline.
“FNCCI has prepared a work plan and forwarded it to us,” said Baraili. “We will discuss the plan with our members and jointly with the other two associations on Monday.”
Following the tussle, the three associations of traders had formed a joint task force on August 25 in the presence of FNCCI to effectively manage gold and silver trading, fix the bullion price and look after distribution of gold and silver in the market by formulating a broad guideline.
Gold on Sunday was traded at an average price of Rs. 32,064 per ten gm (Rs. 37,400 per tola) in the market amid shortage and no authentic pricing.
Posted on: 2010-09-06 07:57
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