Kathmandu, Mar. 10
After touching an all-time high record on Wednesday,
price of gold came down to Rs. 102,000 per tola on Thursday. It witnessed an
overnight fall of Rs. 3,500.
Federation of Nepali Gold and Silver Dealers'
Association (FENEGOSIDA) set the price of hallmark gold for Wednesday at Rs.
105,500 per tola, an increment of Rs. 2,500 from the day before. The price was
set at Rs. 103,000 per tola on Thursday.
Likewise, the price of worked gold is set at Rs. 102,500
per tola. The price of the yellow metal has been increasing in the last few
days owing to the tensions in the eastern Europe. Silver has also followed the
same suit and its price per tola reached Rs. 1405. Its price the other day was Rs.
1,450.
About one-and-a-half years ago, on August 7, 2020, gold
price had reached Rs. 103,500 for a tola before it caught a downward trend. It
had touched Rs. 88,000 mark before climbing up again.
Traders and entrepreneurs said that the price of the
precious metal in Nepal had just reflected the trend in the international
market. It has reached US$1999 for an ounce (28 grams) on Thursday afternoon
after touching $ 2,017 the other day.
Gold price increases due to short supply,
fluctuations in the price of the US dollars, increment in bank interest rates
and international geopolitical crisis. This time, the price is fluctuated in
the wake of Russia-Ukraine tensions and it peaked along with the growth in the
intensity of the war.
Gold is one of the safest bet for investment during
crisis situation and many investors resort to its purchase physically as well
as in the derivative market. Therefore, we can attribute this price hike to the
Russian invasion of Ukraine, said Dwarika Bishwokarma, second Vice-President of
Federation of Nepal Gold Silver Gem and Jewellery Associations.
The price of gold in the international market on
Wednesday recorded an increase of $227 in a month – an exponential growth compared
with the rise of $325 in a year.
Meanwhile, entrepreneurs of this sector have urged
the government to formulate a clear policy for the operation of gold and silver-related
businesses.
A delegation of FENEGOSIDA led by its President
Manik Ratna Shakya called on Director General of the Department of Commerce,
Supply and Consumer Protection, Prem Kumar Shrestha the other day to tell him
that the businesses were facing hurdles in absence of clear policy.
"We have been demanding an exclusive policy for
gold and silver business for more than a decade but no government listened to
it," said Shakya. The government and entrepreneurs had reached an
agreement about nine years ago to formulate a policy and implement it but there
has been zero progress so far.
Published in The Rising Nepal daily on 11 March 2022.
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