The mechanism was set up in the initiation of FNCCI, with representation from the Nepal Gold and Silver Dealers Association (Negosida), Nepal Gems and Jewelry Association (NGJA) and Nepal Gold and Silver Artists Association (NGSAA). [break]
"We received the guidelines prepared by the FNCCI on Sunday. We will try to forge consensus on the guidelines at the meeting of the mechanism on Monday," said Tej Ratna Shakya, president of Negosida.
Shakya, who is also the coordinator of the mechanism, said fixing of prices and procurement of gold from banks will begin once the mechanism members endorse the guidelines.
Bijaya Tamrakar, general secretary of NGJA, said the guidelines envisage ending the dispute regarding distribution of quotas for gold purchase from banks among members.
"Mechanism will also fix the price of gold and silver on the basis of international price, value of US dollar and selling price set by the banks that sell the gold to dealers," added Tamrakar.
Mechanism members are divided over whether to buy gold from banks before the guidelines come into effect.
Negosida is sticking to its previous stance to stop purchase of gold from banks and not set the price of gold and silver until the guidelines come into effect while NGJA and NGSAA are for purchasing gold and fixing the prices even if the guidelines are delayed.
Prices of gold and silver have been varied in the market for last couple of weeks due to lack of unanimous pricing by dealers.
The mechanism was authorized to set prices of gold and silver, recommend procurement of gold for mechanism members and raise other issues pertaining to gold and sliver market in coming days.
Dispute has emerged among traders after Nepal Rastra Bank, designated NGJA and NGSAA also to make recommendations for the purchase of 25 percent each of the total of 10 kg of gold to be sold by banks per day.
Traders have been demanding and lobbying for the release of at least 20 kg of gold per day to meet the gold demand in the market.
Meanwhile Negosida, NGJA and NGSAA have informally agreed to refrain from fixing prices of gold and silver for two days beginning Sunday.
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