After continuous fall more than one and half months, gold price has started to climb up. Price of the yellow metal has gone up by Rs 2,315 per 10 grams over the past fortnight.
On Monday, gold was traded at Rs 46,470 per 10 grams, up by Rs 345 per 10 grams compared to Sunday.
Price of gold came down to five-month low of Rs 44,155 per 10 grams on June 12. Since then the price, however, has continued to increase due to price surge in the international market.
According to Federation of Gold and Silver Dealers´ Associations, gold price has gone up by US$ 10 per troy ounce over the past two weeks. Gold price hovered above $1,327.20 troy ounce in the international market on Monday.
“Gold price has been increasing in the domestic market in line with the price surge in the international market,” Mani Ratna Shakya, president of the federation, told Republica.
According to Shakya, the demand for gold has increased in the international bullion market as investors are turning to gold as a hedge due to ongoing crisis in Iraq. He also said import of gold has become slightly costlier due to depreciation of Nepali currency against US dollar.
Over the past two weeks, Nepali rupee has devaluated by 66 paisa against US dollar. Dollar was traded at Rs 96.58 on Monday.
Meanwhile, jewelers say rising gold price is keeping shoppers away. According to them, sales are down 25 percent compared to same period in the previous year.
“When gold price was falling about a month ago, customers refrained from buying anticipating further drop in prices. Now that the price has gone up, customers are again waiting for the opportune time so that they can sell their jewelries at higher price,” said Shakya.
He also told Republica that demand has fallen to around 25 kg per day, down from average daily demand of 45 kg recorded in the same period in previous years.
Baban Kumar Agrawal, proprietor of New Road-based Jay Mata Di Gold Palace, said the number of customers at his shop has gone down by more than 50 percent. “People were already lowering gold purchase due to security reason. Fluctuating price has further affected our sales,” he added. He also said people are purchasing gold only due to cultural and religious obligations.
Agrawal further said business would go down until mid-August as July-August is regarded as off-season for jewelry business.
HIGHLIGHTS:
- Gold price has increased by Rs 2,315 per 10 grams in the past two weeks
- Gold has become dearer due to price surge in international market
- Traders say sales have done down by around 25 percent
source: republica,1 july 2014
LINK
On Monday, gold was traded at Rs 46,470 per 10 grams, up by Rs 345 per 10 grams compared to Sunday.
Price of gold came down to five-month low of Rs 44,155 per 10 grams on June 12. Since then the price, however, has continued to increase due to price surge in the international market.
According to Federation of Gold and Silver Dealers´ Associations, gold price has gone up by US$ 10 per troy ounce over the past two weeks. Gold price hovered above $1,327.20 troy ounce in the international market on Monday.
“Gold price has been increasing in the domestic market in line with the price surge in the international market,” Mani Ratna Shakya, president of the federation, told Republica.
According to Shakya, the demand for gold has increased in the international bullion market as investors are turning to gold as a hedge due to ongoing crisis in Iraq. He also said import of gold has become slightly costlier due to depreciation of Nepali currency against US dollar.
Over the past two weeks, Nepali rupee has devaluated by 66 paisa against US dollar. Dollar was traded at Rs 96.58 on Monday.
Meanwhile, jewelers say rising gold price is keeping shoppers away. According to them, sales are down 25 percent compared to same period in the previous year.
“When gold price was falling about a month ago, customers refrained from buying anticipating further drop in prices. Now that the price has gone up, customers are again waiting for the opportune time so that they can sell their jewelries at higher price,” said Shakya.
He also told Republica that demand has fallen to around 25 kg per day, down from average daily demand of 45 kg recorded in the same period in previous years.
Baban Kumar Agrawal, proprietor of New Road-based Jay Mata Di Gold Palace, said the number of customers at his shop has gone down by more than 50 percent. “People were already lowering gold purchase due to security reason. Fluctuating price has further affected our sales,” he added. He also said people are purchasing gold only due to cultural and religious obligations.
Agrawal further said business would go down until mid-August as July-August is regarded as off-season for jewelry business.
HIGHLIGHTS:
- Gold price has increased by Rs 2,315 per 10 grams in the past two weeks
- Gold has become dearer due to price surge in international market
- Traders say sales have done down by around 25 percent
source: republica,1 july 2014
LINK
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