Kathmandu, June 7

The price of gold decreased to Rs. 56,650 per tola on Thursday from Rs. 56,900 per tola on Wednesday. That has been the highest price ever.

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 the dollar exchange rates.

"The price of gold went down marginally on Thursday 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.

Gold prices decreased by US$ 6 per ounce to US$ 1,620 per ounce on Thursday in the international market, while its prices were US$ 1,626 per ounce on Wednesday.

According to him, the increment in the price of gold has affected the gold market and the demand this metal has declined by almost 70 per cent.

He said, "We could not predict the price of gold because its prices are determined by the fluctuations of the dollar exchange rate and the in the international market price."

He said that the consumers have started selling their old jewelry. "They seem to be recycling the old ones instead of buying new gold due to the price hike," he added.

Currently, the demand for gold stands around 10 kgs daily in the domestic market.