Gold, silver prices jump twice

KATHMANDU, Sept 27: Gold increased twice in the domestic market on Tuesday, reaching Rs 50,710 per tola (11.664 gms). Silver also shined in the domestic market twice in a day and was traded at Rs 1,100 per tola.



According to Nepal Gold and Silver Dealers´ Association (Negosida), price of the yellow metal which was traded at Rs 50,300 per tola early morning soared to Rs 50,710 per tola late afternoon after the yellow metal glittered in the international market. Similarly, silver was traded at Rs 1,000 per tola on Monday.[break]



Tej Ratna Shakya, president of Negosida, attributed the fluctuation in prices to the announcement of $1.5 trillion relief package by the US government and said that as the price of both gold and silver is increasing, potential buyers have considered this as the peak buying time both in the derivative and physical markets.



Gold was losing its luster since a week ago and was traded in the domestic market on Monday at Rs 49,800 a tola. Due to this, there was a surge in buyers investing in raw gold in the local market ahead of the festive season.



Now when the price has increased, the domestic market is running out of stock and neither the banks nor the stockists are supplying gold as per the demand, traders say.



“It has been difficult for traders because banks as well as stockists are running out of stock. In order to maintain proper supply cycle, we have requested Nepal Ratra Bank officials today to instruct commercial banks to maintain stability and proper supply for both gold and silver,” Tej Ratna said.



“Until yesterday, potential buyers were expecting the prices to go down further but as the price increased twice today and is still keeping up with the upward trend in the international market, there is no stock at all in the domestic market,” said Mahendra Ratna Shakya, newly-elected president of Negosida, Kathmandu district chapter.



The yellow metal recorded the highest price of Rs 54,200 per tola in the domestic market on September 6 and silver reached an all-time high of Rs 1,350 per tola in April.



There are more people willing to invest in gold than in silver and the market is running out of silver since last week. According to Negosida, currently customers are benefiting while traders are in problem due to fluctuation in prices.



Mahendra Ratna Shakya expects prices to rise further on Wednesday as the price in the international market is still climbing.

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