HIMALAYAN NEWS SERVICE
KATHMANDU: The domestic precious metal market saw the price of gold plunge by Rs 900 in a week due to the retreating price in the international bullion market.
As the price of gold sunk to $1,550 in the global market, the price in the domestic market has been
determined at Rs 55,700 for a tola (11.664 grams) — the lowest in last 10 months — as the price
had reached to this level on February 21 and July 13, 2012.
Following the United States Federal Reserve’s zero-rate policy, risk assets of the equity markets in the US have become attractive and as a result investors are moving funds to these instruments for short-term gains. The aversion of a full blown Cyprus banking crisis has also reduced the appeal of gold at present. Moreover, Credit Suisse has also cut gold price forecasts for this year and next — reducing its 2013 price estimation on gold to $1,580 from $1,740 an ounce.
Earlier in September, the price of gold had reached Rs 61,760 per tola as its price shot up worldwide to $1770 per troy ounce. United States’ Federal Reserve back then had revealed its plans to purchase $40 billion worth of mortgage-backed securities per month until it saw a substantial improvement in the employment picture.
Nepal imported gold worth Rs 15.5 billion in the first seven months of the current fiscal year. Government allows only banks to import 15 kilos of gold per day. Traders have been asking the government to increase the quota saying the supply is half the demand.