Fluctuation in gold price continues

KATHMANDU, July 5: Gold and silver prices have continued to fluctuate in the domestic market in the last few weeks, thanks to volatile international bullion market.



Gold traders said international gold prices have continued to fluctuate as people are shifting to other areas for investment. [break]



"The demand for gold and silver in leading international markets like US has gone down as people are investing more on treasury bond as it is safer than investment in gold," said Manik Ratna Shakya, general secretary of Nepal Gold and Silver Dealers´ Association (Negosida). "This shift has led to low demand for gold and silver in international market and subsequently decline in prices. This has also affected prices in domestic market."



The association had fixed the price of gold and silver at Rs 31,035 per 10 grams and Rs 494 per 10 grams on last Sunday (June 30). However, gold price dropped to Rs 30,350 per 10 grams this Sunday. Similarly, price of silver fell to Rs 480 per 10 grams.



Gold, however, gained marginally to Rs 30,435 on Monday. Silver price, however, remained unchanged.



Shakya termed the fluctuation in prices as the common feature in live market. "Fluctuation in prices is one of essential features in live market," Shakya said, adding, "Strengthening Euro against US dollar, fall in international oil price and rise in demand for US treasury bonds are some of the major reasons behind fluctuation in gold prices."



As our bullion market is dependent on international market, small shift in international market affect prices in local market, Shakya added.

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