My Republica, August 26, 2019
KATHMANDU: The gold price has set a new high record of Rs 72,500 per tola (11.664 grams) in the domestic market on Sunday.
The price saw an increase of Rs 1,200 in a day. The yellow metal was traded for Rs 71,300 per tola on Friday, according to Federation of Nepal Gold and Silver Dealers' Association, an organization which sets reference price for gold dealers across the country every day.
The price has been rising in line with the international market and American Federal Reserve Bank's recent cut in interest, US-China trade war, and current Kashmir tension, among other reasons.
As the price continues to increase, the daily demand of gold has been plunging deep with only 10 percent daily demand. The daily demand of gold used to stand at 35 kilograms per day. However, with the decline in demand, banks have not been able to empty the gold stock they have with them.
Commercial banks are allowed to import 20 kilograms of gold per day and sell it to dealers.
According to the central bank, gold worth Rs 31.65 billion was imported by the commercial banks in the first eleven months of the Fiscal Year 2018/19.
The bullion worth Rs 28.79 billion and Rs 24.30 billion was imported in the FY 2017/18 and FY 2016/17, respectively.