Gold hits 8-month low of Rs49,500 per tola

- POST REPORT, Kathmandu
Gold hits 8-month low of Rs49,500 per tola

Jul 17, 2015-

Gold prices have been in freefall for two consecutive days hitting an eight-month low on Friday. The yellow metal lost Rs700 per tola and slid below the Rs50,000 mark to Rs49,500 at the end of the trading week. On Thursday, the price had dropped by Rs300 per tola to Rs50,200. 

The Federation of Nepal Gold and Silver Traders Association (Fenegosida), which fixes bullion prices in the domestic market, attributed the slump to reduced customs duty and a downward trend in the global market.

The government has slashed the import duty on gold by Rs1,000 to Rs4,200 per 10 gram through the Financial Act. At the same time, gold prices fell to $1,145 per ounce in the international market from $1,156 on Thursday, according to Fenegosida. 

“The decrease in customs duty became effective from today which has been reflected in the drop in prices. Besides, prices in the international markets have also fallen sharply,” said Tej Ratna Shakya, special member of Fenegosida. 

International media reported that gold prices fell close to their lowest level in eight months on Friday pressured by a strong dollar and increasing bets on a Federal Reserve rate rise this year. 

The drop in prices is expected to boost demand for the precious metal. Traders said that gold sales had been slow since the April 25 earthquake. The appearance of an intercalary month lasting from mid-June to mid-July, when people avoid organizing auspicious events, also hampered business, said traders.

“Footfall has been very low and there is a major festival this month, but we hope that sales will rebound in the coming months as the price has dropped below Rs50,000,” said Mani Ratna Shakya, president of Fenegosida.

Shakya added that gold sales had plummeted 50 percent in the last two months. “Daily sales in the valley amounted to 10-15 kg against the usual requirement of 20-30 kg,” he said. 

Meanwhile, silver prices jumped Rs5 per tola to Rs670 due to a hike in customs duty. The government has increased the import duty on silver by Rs10 per 10 gm in a bid to curb rising imports. The tax now stands at Rs56 per 10 gm.

Published: 18-07-2015 08:52

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