KATHMANDU,
The central bank has been resisting continued pressure from bullion traders to increase the quota. Only commercial banks are allowed to import gold .
While the central bank is concerned that a hike in the quota
Showing posts with label Commodities. Show all posts
Showing posts with label Commodities. Show all posts
Wednesday, December 18, 2013
Gold import quota comes down to 15 kg a day
The central bank has been resisting continued pressure from bullion traders to increase the quota. Only commercial banks are allowed to import gold .
While the central bank is concerned that a hike in the quota
Wednesday, July 3, 2013
Gold dearer by Rs 650 per tola
KATHMANDU, July 3, 2013
Gold price jumped by Rs 650 per tola (11.664 grams) to Rs 49,150 per tola in the domestic market on Tuesday.
The precious yellow metal was traded at Rs 48,500 per tola on Monday.
Gold price went up in the domestic market following price hike in the international market, according to the Federation of Nepal Gold and Silver Dealers´ Associations.
Gold was traded at $1,297 per troy ounce in the international market on Tuesday, up $15 from Monday´s price.
Reuters reported that gold price rose as the dollar steadied and equity markets eased ahead of US economic data this week which should give more clues on the country´s monetary policy.
Gold price has been steadily increasing in the domestic market after plunging to 23-month low of Rs 48,100 per tola on June 28.
Price of silver has, however, remained stable at Rs 815 per tola since June 30.
Source: Republica
Sunday, June 9, 2013
Govt told to raise import duty on gold
KATHMANDU, June 8, 2013
Gold traders have requested the government to raise import duty on gold.
They made such a request arguing that duty hike on gold in India would spur smuggling of yellow to the southern neighbor at a time when the local market is facing shortage of gold.
India on Wednesday hiked gold import duty from 6 percent to 8 percent to curb its current account deficit.
“At a time when the domestic market is facing gold shortage, the recent duty hike in India might increase gold smuggling to India,” Mani Ratna Shakya, president of Federation of Nepal Gold and Silver Dealers´ Associations, told Republica. “Hence, we have requested the government to hike the duty as soon as possible.”
If customs duty on gold is raised in line with India, the yellow metal will be dearer in the domestic market by around Rs 1,000 per 10 grams. But traders have requested the government to increase the import duty by at least Rs 1,500 per 10 grams to prevent smuggling of gold to India.
“If the government does not raise duty immediately, the duty hike in India, which has made gold expensive there compared to the local market, will encourage smugglers to illegally export the yellow metal to India to get Indian currency which is selling at higher rates in black market,” Shakya added.
Shakya told Republica that the federation has already raised the issue before the Governor of Nepal Rastra Bank - the central bank. “The Governor has assured us that he would look into the issue and do the needful,” he added.
Bullion traders have demanded that the government take the decision on the issue at the earliest.
The government has been levying customs duty of Rs 3,000 per 10 grams on gold. It had raised duty on January 24 by Rs 700 per 10 grams after the southern neighbor increased duty on refined gold to IRs 2,880 per 10 grams.
Source: Republica
Tuesday, April 16, 2013
Gold price suffers biggest single day fall
APR 16 - 2013
Triggered by a huge downfall in the international market, the domestic market witnessed the biggest single day drop in price of gold on Monday.
The precious yellow metal was traded at Rs 45,010 per 10 gm (Rs 52,500 per tola), down from Rs 47,840 for 10gms on Sunday.
This is the biggest drop in the price witnessed by the domestic bullion market so far. Earlier in mid-November 2011, price of gold had fallen by Rs 2,155, per 10 gm, the second biggest fall in the price. It could bring a huge relief to those tying knot as people have been compelled to spend massively on gold purchases.
Gold price in the international market dropped dramatically as investors across the globe started opting to put their money on property, equity and fixed deposits. News agencies have reported that the improvement in the US economy, coupled with the Euro and Cyprus issues, has led to investors shifting from gold to equities and other investment avenues.
Reuters reported that gold dropped as much as 6.3 percent on Monday to below $1,400 per ounce for the first time since March 2011 as the market’s downward momentum gained speed after more than four months of investor selling.
According to Manik Ratna Shakya, general secretary of Federation of Nepal Gold and Silver Dealers Association (FNEGOSIDA), the current bullion price has come down to the level that was at the same period last year. The price of the precious metal had hit a record high of Rs 53,275 in September 2012.
“Due to volatility in gold price in the international market, the price has been going down continuously in the recent days,” said Shakya. “It might drop further on Tuesday but is unlikely to go down drastically as today.”
Despite massive downturn in gold price, gold traders claimed that sales dropped dramatically on Monday compared to Sunday. They said people are expecting further drop in price. “People are confused and are in wait-and-watch mode, predicting the price to go down further,” said Narendra Kumar Gupta, chairman of Shree Riddhi Siddhi Jewellers. Manish Pradhan, director of Arsi Jewellers echoed Gupta. “Compared to Sunday, our sales have fallen down significantly.”
Despite the current drop in demand, trade pundits predicted a short supply of gold in the market in the near future. “There isn’t much demand now despite the beginning of wedding season. But once the price starts to pick up after a possible further fall, the market will witness shortage of gold .” Gupta said, pointing to trends of Nepali customers who prefer buying gold when the price starts going up after a slip.
The ceiling on gold import imposed by the Nepal Rastra Bank (NRB) too is likely to contribute to the possible bullion shortage, traders said. The traders have long been demanding to increase the current quota of 15kg but the central bank has been resisting it. “The current daily import quota is insufficient even during normal days,” Shakya said.
He added that the failure of Agriculture Development Bank to supply gold in the local market on Monday would worsen the crisis, once the demand starts swelling. The bullion traders have planned to meet Finance Minister Shankar Koirala to request him to increase the quota.
Source: The Kathmandu Post
Triggered by a huge downfall in the international market, the domestic market witnessed the biggest single day drop in price of gold on Monday.
The precious yellow metal was traded at Rs 45,010 per 10 gm (Rs 52,500 per tola), down from Rs 47,840 for 10gms on Sunday.
This is the biggest drop in the price witnessed by the domestic bullion market so far. Earlier in mid-November 2011, price of gold had fallen by Rs 2,155, per 10 gm, the second biggest fall in the price. It could bring a huge relief to those tying knot as people have been compelled to spend massively on gold purchases.
Gold price in the international market dropped dramatically as investors across the globe started opting to put their money on property, equity and fixed deposits. News agencies have reported that the improvement in the US economy, coupled with the Euro and Cyprus issues, has led to investors shifting from gold to equities and other investment avenues.
Reuters reported that gold dropped as much as 6.3 percent on Monday to below $1,400 per ounce for the first time since March 2011 as the market’s downward momentum gained speed after more than four months of investor selling.
According to Manik Ratna Shakya, general secretary of Federation of Nepal Gold and Silver Dealers Association (FNEGOSIDA), the current bullion price has come down to the level that was at the same period last year. The price of the precious metal had hit a record high of Rs 53,275 in September 2012.
“Due to volatility in gold price in the international market, the price has been going down continuously in the recent days,” said Shakya. “It might drop further on Tuesday but is unlikely to go down drastically as today.”
Despite massive downturn in gold price, gold traders claimed that sales dropped dramatically on Monday compared to Sunday. They said people are expecting further drop in price. “People are confused and are in wait-and-watch mode, predicting the price to go down further,” said Narendra Kumar Gupta, chairman of Shree Riddhi Siddhi Jewellers. Manish Pradhan, director of Arsi Jewellers echoed Gupta. “Compared to Sunday, our sales have fallen down significantly.”
Despite the current drop in demand, trade pundits predicted a short supply of gold in the market in the near future. “There isn’t much demand now despite the beginning of wedding season. But once the price starts to pick up after a possible further fall, the market will witness shortage of gold .” Gupta said, pointing to trends of Nepali customers who prefer buying gold when the price starts going up after a slip.
The ceiling on gold import imposed by the Nepal Rastra Bank (NRB) too is likely to contribute to the possible bullion shortage, traders said. The traders have long been demanding to increase the current quota of 15kg but the central bank has been resisting it. “The current daily import quota is insufficient even during normal days,” Shakya said.
He added that the failure of Agriculture Development Bank to supply gold in the local market on Monday would worsen the crisis, once the demand starts swelling. The bullion traders have planned to meet Finance Minister Shankar Koirala to request him to increase the quota.
Source: The Kathmandu Post
Tuesday, September 4, 2012
Gold roars to a new high; nears Rs 60,000 per tola
KATHMANDU, Sep 3, 2012
After a brief reprieve last week, gold continued its record-setting spree climbing to a new high of Rs 59,900 per tola (11.664 grams) in the domestic market on Sunday - the first trading day of the week.
Nepal Gold and Silver Dealers´ Association (Negosida), which fixes gold and silver prices in the domestic market, increased gold price by Rs 900 per tola on Sunday compared to Friday when the yellow metal was traded at Rs 59,000 per tola.
“International bullion prices determines gold and silver prices in the domestic market. We had to raise price of gold after the yellow market rallied in the international market on Sunday,” said Diyesh Ratna Shakya, secretary of Negosida. “Glittering gold is turning shoppers away ahead of the festive season.”
Gold, which was priced at US $1,655 per troy ounce during early trading on Friday, gained $36 per troy in the international bullion market on Saturday.
According to Shrestha, gold price is increasing in international market as investors are looking to safe haven due to slowing global stock market.
Traders said demand for gold in the capital has dropped to around 10 kg a day, almost half of average daily demand recorded a month ago.
“It would be difficult for bullion traders to sustain business if gold sales did not pick up during upcoming festive season of Teej, Dashain, Tihar and Chhath,” Pramod Ratna Shakya, proprietor of New Road-based Tejmin Jewelers, said.
Price of silver has also increased by Rs 40 per tola. Silver was traded at Rs 11,145 per tola on Sunday.
Source: Republica
After a brief reprieve last week, gold continued its record-setting spree climbing to a new high of Rs 59,900 per tola (11.664 grams) in the domestic market on Sunday - the first trading day of the week.
Nepal Gold and Silver Dealers´ Association (Negosida), which fixes gold and silver prices in the domestic market, increased gold price by Rs 900 per tola on Sunday compared to Friday when the yellow metal was traded at Rs 59,000 per tola.
“International bullion prices determines gold and silver prices in the domestic market. We had to raise price of gold after the yellow market rallied in the international market on Sunday,” said Diyesh Ratna Shakya, secretary of Negosida. “Glittering gold is turning shoppers away ahead of the festive season.”
Gold, which was priced at US $1,655 per troy ounce during early trading on Friday, gained $36 per troy in the international bullion market on Saturday.
According to Shrestha, gold price is increasing in international market as investors are looking to safe haven due to slowing global stock market.
Traders said demand for gold in the capital has dropped to around 10 kg a day, almost half of average daily demand recorded a month ago.
“It would be difficult for bullion traders to sustain business if gold sales did not pick up during upcoming festive season of Teej, Dashain, Tihar and Chhath,” Pramod Ratna Shakya, proprietor of New Road-based Tejmin Jewelers, said.
Price of silver has also increased by Rs 40 per tola. Silver was traded at Rs 11,145 per tola on Sunday.
Source: Republica
Tuesday, August 28, 2012
Gold, silver set new records
KATHMANDU, Aug 27, 2012
Gold continued its bull run in the domestic market, climbing to a new high of Rs 59,194 per tola (11.664 grams) on Sunday. Silver also set a new record of Rs 1,115 on the day.
Nepal Gold and Silver Dealers´ Association (Negosida) had fixed gold price at Rs 58,900 on Friday. As the association do not fix price on Saturdays, the yellow metal was traded at Rs 58,900 on Saturday as well.
According to traders, gold became expensive in the domestic market following rise in prices of the precious yellow metal in the domestic market. Gold was traded at US $1674 per troy ounce on Sunday, posting a rise of $7 per troy once compared to Saturday.
Negosida has attributed the rise in price to upward journey of gold in the international bullion market. Gold is becoming expensive as investors are turning to safe have following slackness seen in major stock market across the world, officials of Negosida said.
“Price of gold is rising continuously in the international market, making customers nervous ahead of major festivals like Teej, Dashain and Tihar when demand for the yellow metal hits peak,” Bijay Ratna Shakya, secretary of Negosida, told Republica.
Traders said gold´s march into the green territory has led to drop in demand for the yellow metal in the domestic market. They said demand has dropped to an average of 20 kg per day, almost half of the daily demand compared to last year. Gold price has increased by over Rs 10,000 per tola over the past year.
Similarly, price of silver has also hit a new high of Rs 1,115 per tola. Silver was traded at Rs 1,100 per tola on Friday.
Source: Republica
Gold continued its bull run in the domestic market, climbing to a new high of Rs 59,194 per tola (11.664 grams) on Sunday. Silver also set a new record of Rs 1,115 on the day.
Nepal Gold and Silver Dealers´ Association (Negosida) had fixed gold price at Rs 58,900 on Friday. As the association do not fix price on Saturdays, the yellow metal was traded at Rs 58,900 on Saturday as well.
According to traders, gold became expensive in the domestic market following rise in prices of the precious yellow metal in the domestic market. Gold was traded at US $1674 per troy ounce on Sunday, posting a rise of $7 per troy once compared to Saturday.
Negosida has attributed the rise in price to upward journey of gold in the international bullion market. Gold is becoming expensive as investors are turning to safe have following slackness seen in major stock market across the world, officials of Negosida said.
“Price of gold is rising continuously in the international market, making customers nervous ahead of major festivals like Teej, Dashain and Tihar when demand for the yellow metal hits peak,” Bijay Ratna Shakya, secretary of Negosida, told Republica.
Traders said gold´s march into the green territory has led to drop in demand for the yellow metal in the domestic market. They said demand has dropped to an average of 20 kg per day, almost half of the daily demand compared to last year. Gold price has increased by over Rs 10,000 per tola over the past year.
Similarly, price of silver has also hit a new high of Rs 1,115 per tola. Silver was traded at Rs 1,100 per tola on Friday.
Source: Republica
Friday, July 13, 2012
Inflation threatens to reach double digits
KATHMANDU, JUL 13 - 2012
Rise in prices of both food and non-food items has pushed inflation close to digits, thanks to supply constraints and appreciation of the US dollar against the Nepali rupee.
Inflation rose to 9.9 percent in the 11th month of the fiscal year — this year’s highest, according to a source at the Nepal Rastra Bank (NRB).
Although the price level moderated in the middle of the year, coming down to as low as 6.8 percent in mid-January, the figure remained static at 7 percent in mid-February and mid-March and started to ascend in latter months. Earlier, the figure had hit 8.9 percent in mid-October.
“The latest price rise is mainly the result of supply constraints due to several nationwide bandas and strikes ahead of the dissolution of the Constituent Assembly,” said the NRB official. “In the meantime, the appreciation of dollar against rupee also contributed to the rise in prices of third-country imports.”
According to the official, food prices rose slightly, while prices of vegetables and fruits skyrocketed. Supply constraint is expected to prevail for a few more months of monsoon. “Nepal’s price rise is also correlated with inflation in India where consumer price index is at double digits,” said the official.
Traders also say prices of essential goods such as rice, pulse and edible oil have gone up by 10-12 percent as of July, compared to the same period last year. “For essential commodity prices, it is a huge increment,” said Pabitra Bajracharya, president of Nepal Retailers’ Association. “Purchasing capacity of general people hasn’t increased in the way inflation has gone up. This is a very bad sign for the whole sector.”
According to Bajracharya, oil price has gone up by Rs 20 per litre on an average, while a 30-kg rice packet has become costlier by Rs 100 to Rs 250. Pulses have also become dearer by Rs 10-25 per kg. “As most of the edible oil comes from third countries, mainly from South American, the strengthening of dollar is to blame for the price rise,” said Ishwor Shrestha, one of the major importers of edible oil and sugar.
As far as vegetables are concerned, their prices rose by as high as 60 percent, compared to prices in mid-September 2011. The price of long brinjal rose by 60 percent to Rs 33 per kg, while white potato price reached Rs 25.5 per kg, up 42 percent.
Over the last year, there has been a significant rise in transportation costs too, which has made goods expensive. Bajracharya said cargo vans have doubled their charge within the Valley to Rs 800 per tip.
Inflation Figures
Mid-Aug 2011 7.7
Mid-Sept 2011 8.5
Mid-Oct 2011 8.9
Mid-Nov 2011 8.5
Mid-Dec 2011 7.5
Mid-Jan 2012 6.8
Mid-Feb 2012 7.0
Mid-March 2012 7.0
Mid-April 2012 7.5
Mid-May 2012 8.7
Mid-June 2012 9.9
Source: Nepal Rastra Bank/ The Kathmandu Post
Rise in prices of both food and non-food items has pushed inflation close to digits, thanks to supply constraints and appreciation of the US dollar against the Nepali rupee.
Inflation rose to 9.9 percent in the 11th month of the fiscal year — this year’s highest, according to a source at the Nepal Rastra Bank (NRB).
Although the price level moderated in the middle of the year, coming down to as low as 6.8 percent in mid-January, the figure remained static at 7 percent in mid-February and mid-March and started to ascend in latter months. Earlier, the figure had hit 8.9 percent in mid-October.
“The latest price rise is mainly the result of supply constraints due to several nationwide bandas and strikes ahead of the dissolution of the Constituent Assembly,” said the NRB official. “In the meantime, the appreciation of dollar against rupee also contributed to the rise in prices of third-country imports.”
According to the official, food prices rose slightly, while prices of vegetables and fruits skyrocketed. Supply constraint is expected to prevail for a few more months of monsoon. “Nepal’s price rise is also correlated with inflation in India where consumer price index is at double digits,” said the official.
Traders also say prices of essential goods such as rice, pulse and edible oil have gone up by 10-12 percent as of July, compared to the same period last year. “For essential commodity prices, it is a huge increment,” said Pabitra Bajracharya, president of Nepal Retailers’ Association. “Purchasing capacity of general people hasn’t increased in the way inflation has gone up. This is a very bad sign for the whole sector.”
According to Bajracharya, oil price has gone up by Rs 20 per litre on an average, while a 30-kg rice packet has become costlier by Rs 100 to Rs 250. Pulses have also become dearer by Rs 10-25 per kg. “As most of the edible oil comes from third countries, mainly from South American, the strengthening of dollar is to blame for the price rise,” said Ishwor Shrestha, one of the major importers of edible oil and sugar.
As far as vegetables are concerned, their prices rose by as high as 60 percent, compared to prices in mid-September 2011. The price of long brinjal rose by 60 percent to Rs 33 per kg, while white potato price reached Rs 25.5 per kg, up 42 percent.
Over the last year, there has been a significant rise in transportation costs too, which has made goods expensive. Bajracharya said cargo vans have doubled their charge within the Valley to Rs 800 per tip.
Inflation Figures
Mid-Aug 2011 7.7
Mid-Sept 2011 8.5
Mid-Oct 2011 8.9
Mid-Nov 2011 8.5
Mid-Dec 2011 7.5
Mid-Jan 2012 6.8
Mid-Feb 2012 7.0
Mid-March 2012 7.0
Mid-April 2012 7.5
Mid-May 2012 8.7
Mid-June 2012 9.9
Source: Nepal Rastra Bank/ The Kathmandu Post
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