Gold unstable due to fluctuation of dollar
With the fluctuation of the price of gold in the international market, its price recorded the highest ever in the domestic market this week.
The precious metal was sold for Rs. 56, 900 per tola on Wednesday. However, the price of gold decreased by almost Rs. 1,700 per tola over the week.
Gold was traded at Rs.55, 100 per tola on Friday in the local market, while it was sold for Rs. 56,800 per tola on Sunday. On Friday last week, the price of gold was Rs. 55, 200 per tola in the local market.
Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers’ Association (NEGOSIDA), said that the price of gold has been fluctuating highly in the local market due to the fluctuation of US dollar exchange rates.
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“The price of gold went down marginally from Thursday after recoding the highest on Wednesday due to improved exchange rates of Indian currency against the US dollar as well as the decrease in the price of this precious metal in the international market,” he said.
In the domestic market, gold was traded at Rs. 56,600 per tola on Monday and Tuesday, while it was sold for Rs. 56,900 and Rs.56, 650 on Wednesday and Thursday, respectively.
He, however, said that the price of gold is likely to go up by more than Rs.1, 000 per tola on Sunday (June 10) because its price has increased in the international market.
Gold prices fell by US$ 53 per ounce to US$ 1,571 per ounce over the week. The precious metal was traded at US$ 1,571 per ounce on Friday against US$ 1,624 per ounce on Sunday in the international market.
According to him, the increment in the price of gold has affected the gold market.
He further said that the demand for gold will be affected with the wedding season starting soon.
He said that demand for gold has gone up this week as compared to last week because of the arrival of wedding season.
He said that consumers have been in a ‘wait and see’ position for buying gold due to high fluctuation of gold price in both domestic and international markets.
He said, “It is difficult for us to predict the price of gold because its prices are determined by the fluctuations of the dollar exchange rate and the international market price.”