Bullion price stumbles, but buyers chary

The Nepali bullion market experienced a sharp price fall this week. The market opened at Rs 28,295 per 10 gram (Rs 33,000 a tola) on Sunday and closed on Friday at Rs 27,565 per 10 gram (Rs 32,150 a tola) -- a sharp fall of Rs 730.

The price fall can be said to be Rs 2,000 if the price were to be compared with last week's. Last Sunday, gold price was Rs 29,535 per 10 gram (Rs 34,450 a tola), a record high price in history. Price fluctuation has shaken buyers' confidence and sale has halved from 25kg daily to 12kg.

Nepal Gold and Silver Dealers' Association (NEGOSIDA) is hoping that there is a rise in gold sale if the price stays stable for a week.

Despite the wedding season, gold sale reduced by 80 per cent over last week.

"Price uncertainty rules the market," said Sunil Shrestha of RK Jewellers, New Road. November and December are major wedding months as per Hindu custom.

Gold price went above Rs 28,000 per 10 gram on three trading days -- Sunday, Monday and Tuesday -and fell to Rs 27,000 per 10 gram on the ensuing days. This Thursday had the lowest price of gold at Rs 27,435 in the week -- from December 6-11. The price again jumped on Friday and gold traded at Rs 27,565 per 10 gram.

NEGOSIDA has linked the price fall to the improving economy of the United States of America. "The gold price is responding to the improving economic status of America," it said in a statement. Gold price in the international market has decreased to US $1,134 an ounce after reaching US $1,214 in pervious week.

Silver price has also gone down this week by Rs 8 per 10g. Silver market opened at Rs 465 per 10 gram on Sunday and closed at Rs 457 per 10 gram on Friday.