Kathmandu, Mar. 10
As the wedding season is about to end, the demand for gold has been decreasing gradually in the domestic market for the last few days.
The demand for gold has declined almost by 50 per cent in the local market within a week, gold traders said.
Tej Ratna Shakya, president of Nepal Gold and Silver Dealers’ Association (NEGOSIDA), said that the demand for the precious metal has decreased to around to 20 kgs a day now as compared to 45 kgs daily during the end of February this year.
Shakya said that the demand for gold could stand at about 15 kgs a day from mid-March to mid-April.
According to him, the present supply of gold would be enough for the local market during off-season.
Despite a decrease in the price of gold in the international market, its price has increased in the domestic bullion market over the week because a rise in the exchange rates of the US$.
The price of gold increased by around Rs.400 per tola during the week.
Gold was traded at Rs. to Rs. 54,150 per tola on Friday this week, while the precious metal was sold for Rs. 53,750 per tola on Sunday.
Gold traders said that the increase in the exchange rate of dollar has contributed to raising the prices of gold in the domestic market despite the decline in its price in the international market.
The price of gold decreased by US$ 7 per ounce to US$ 1,705 per ounce in the international market over the week.
He, however, said that the price of gold saw an unexpected decline in the local market due to a new American economic policy.