Himalayan News Service
KATHMANDU: Insufficient import of gold by banks has caused a shortage of gold in the local market this week. “Total gold demand in the market is about 25 kilos a day,” said Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (NEGOSIDA) adding that present quota of 10 kg is insufficient and the Nepal Rastra Bank (NRB) should immediately raise the quotas for the banks to more than 10 kg in view of demand growing strong in the local market.
This season, the demand for gold in the domestic market is going to increase from 25 kg to 30 kg a day, hence there is an urgent need to increase the gold quotas for the bank to meet the local demand.
Traders are still dissatisfied with the government decision to allow import of gold by an individual bank only up to 10 Kg a day. Nepal Bankers’ Association (NBA) has listed four commercial banks to import gold but the banks due to some technical problems have failed to supply gold to the traders in the market. “If the problem is not solved at the earliest, this can create an acute shortage, promoting black-marketing during the marriage season,” said Shakya.
According to the NEGOSIDA, gold this week opened at Rs 30,180 every 10 gram on Sunday and remained constant on Monday. Tuesday observed a price hike to Rs 30,435 per 10 grasssssm while it broke all its past records as it was traded at Rs 30,910 per 10 gram on Wednesday due to a strong dollar against the Indian Currency (IC). The dollar was at Rs 75.63 on Wednesday against Rs 74.75 on Sunday.
The gold price further declined to Rs 30,480 per 10 gram on Thursday and closed at Rs 30,110 per 10 gram on Friday.
Meanwhile, silver opened at Rs 474 per 10 gram and remained at the same price till Tuesday. Silver gained Rs 3.50 and was traded for Rs 477.50 per 10 gram on Wednesday. On Thursday, silver was trading at Rs 474 per 10 gram, and the market closed at Rs 467 per 10 gram on Friday, informed NEGOSIDA.
