Price down to Rs 52,600 per per tola
KATHMANDU, Dec 11: Here is good news for those planning to tie knot this season: price of gold, a most have community in Nepali weddings, has been falling continuously over the past few weeks.
Gold price fell by Rs 400 per tola (11.664 gram) on Sunday. The yellow metal was trade at Rs Rs 53,000 per tola on Friday.
Rupee weakens, gold loses shine
The decline in gold price during marriage season (November-December) has come as a boon to many, according to officials of Federation of Nepal Gold and Silver Dealers' Associations.
Lack of investment opportunity has pulled the price of gold down in the global market, they said, adding that the strong greenback and bullish global stock market were the other reasons behind drop in gold price.
Gold opened for trading in the international market at US$ 1160.60 per troy ounce. In Nepal, price of the gold is directly related to exchange rate of Nepali rupee vis-à-vis US dollar as the Gold Price Fixation Committee under the federation fixes the price of the gold on the basis of exchange rate.
The committee fixes the price of the gold at 11 am every day on the basis of price in the international market. Exchange rate of US dollar directly affected gold price. If the price of gold goes up or falls by $10, the federation adjusts the price accordingly.
Four factors - price in the international market, exchange rate of US dollar, customs duty and profit margin - plays key role while fixing price of gold in the domestic market, according to Tej Ratna Shakya, former president of the federation. “We add 1 percent profit margin. The profit is shared between banks and traders,” he said, adding: “Demand supply situation also affects gold price.”
Average daily demand for gold is around 35 per kg, according to the federation. “During wedding season, however, the demand climbs up to as much as 50 kg per day,” said Shakya.
