40 pc cash margin must for gold imports

In order to check bloated gold imports that have alarmingly widened the country´s foreign trade deficit, the Nepal Rastra Bank (NRB) has instructed financial institutions to issue letter of credit (LC) for the purpose of gold imports only against 40 percent cash margin.

The directive issued on Friday also barred financial institutions from issuing loans to importers for the purpose of managing cash margin required for issuing LC for importing gold. "The new directive has compelled gold importers to manage at least 40 percent of total import value in cash, which will make gold import business costlier," said a banker, preferring to be unnamed. Earlier, there was no specific rule over the ratio of cash margin while issuing LC for gold import.

That would depend upon the creditworthiness of clients, but generally banks would demand around 10 percent cash margin, said the banker. The directive further said that newly introduced 40 percent cash margin directive is applicable while issuing normal LC, standby LC and bank guarantee for the gold imports.

Earlier, top government officers including the finance secretary had stressed the need for curbing gold imports, stating that swollen gold imports were one of the major factors for record Rs 20.5 billion deficit in the balance of payment.

The total gold imports of the country during the first four months of the current fiscal year was stood at Rs 19.25 billion where as it was just Rs 7.17 billion last year and Rs 2.1 billion in the previous year. Experts attributed the increased speculative investments made on gold following the crash of stock market was the principal reasons for the soar in imports. Concerned government officials informed myrepublica.com that gold imports in this fiscal year´s fifth month alone was Rs 7 billion, taking the first five months´ total gold imports to Rs 27 billion.
Source:Republica

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Gold imports down in fourth month

After sudden surge in gold imports in the second and third months of the current fiscal year, Nepal´s god imports in the fourth month declined by 38 percent, though the import volume was still higher than the volume recorded last year. According to statistics compiled by the Department of Customs, Nepal imported gold worth Rs 4.34 billion during the fourth month compared to Rs 2.59 billion recorded in the same period last year. The total import in the third month of the current fiscal year was worth Rs 7.02 billion.

Concerned experts said that higher imports made in the second and third months that altogether was much higher than the demand might have played a role in squeezing imports in the fourth month. "Higher imports during the first quarter of the current fiscal year made domestic market saturated, resulting in decline in imports afterward," said Tej Ranta Shakya, president of Nepal Gold and Silver Dealers´ Association.

Nepal´s total gold imports during the first four months of the current fiscal year has reached Rs 19.26 billion, more than the entire gold imports recorded during the last fiscal year. "Demand of gold had surged as it emerged as an alternative tool of speculative investment for those having relatively small investment portfolio, say less than one million, after recent slowdown in stock market," Shakya added.

However, some government officers preferring not to be named said that apart from the rise in the domestic demand in gold, increasing smuggling of gold to India was a major reason for the surge in gold imports. Some officials estimate that around one-third of the total imports makes its way into Indian market through largely unregulated border due to difference in customs duty.

Custom rate on gold import in India is around Rs 466 per ten gram while it is just Rs 130 in Nepal. According to the officials, one can make a net profit of around Rs 250,000 while smuggling one kilogram of gold to India.
Source:Republica

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Rupee gains, gold dearer

Nepali currency gained about a quarter of rupee against the US dollar as slipping demand for greenback caused its devaluation against the Indian currency, with which Nepali rupee is pegged. Despite the currency appreciation, gold price soared in the domestic market because of the rise in the price of the yellow metal in the international market.

Currency

Nepali currency appreciated by 21 paisa against a US dollar, rendering imports cheaper but slashing income earnings of exporters and remittance receivers over this week. A dollar was exchanged at Rs 77.19 on Friday.

Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 77.4­0 on Sunday. As demand for dollar went down in India, rupee gained 10 paisa on Monday and further appreciated by 14 paisa on Wednesday. Exchange rate of a dollar went up by five paisa on Thursday, but again slipped by 2 paisa to close at Rs 77.19 on Friday.

Rupee weakened against euro by 22 paisa, but gained 9 paisa against a pound sterling during the period. On Friday, a euro was exchanged at Rs 113.96, while pound sterling was valued at Rs 126.44.

Bullion

Gold price went up by Rs 16.50 per 10 grams in the domestic market over this week. Nepal Gold and Silver Dealers´ Association that tagged the gold price at Rs 25,465 per 10 grams on Friday cited rise in the price in the international market for the rise in the local market.

According to the association, domestic bullion market opened on Sunday with gold price at Rs 25,300 per 10 grams. Amid currency gain, its price dropped by Rs 90 on Monday.

But as the international prices rallied, gold price caught upward trend, making it dearer (Rs 25,375 per 10 grams) on Tuesday and Wednesday (Rs 25,465). Despite the association´s claim of prices remaining unchanged on Friday, a public holiday, dealers informed Republica that they were selling yellow metal on Friday at a cheaper price by Rs 300 than the Thursday´s price.

The price of silver, however, dropped this week and closed at Rs 433 per 10 grams on Friday.
Source:Republica

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Gold price recedes as rupee gains

After a brief tumble, Nepali currency bounced back against the US dollar this week. The gain is attributed to a drop in the value of greenback against Indian currency, with which Nepali currency is pegged. Gold price reached a new record in the domestic market on Thursday, before falling down on Friday largely due to the appreciation of rupee.

Currency

Nepali currency appreciated by 75 paisa against a US dollar, rendering imports cheaper but slashing income earning for exporters and remittance receivers over this week. A dollar was exchanged at Rs 77.22 on Friday.

Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 77.97 on Sunday. As demand for dollar went through rapid upheavals in India, rupee gained marginally on Monday, but slipped to as low as Rs 78.32 per dollar on Tuesday. It gradually bounced back over the remaining days, gaining Rs 1.10 against a dollar on Friday, as compared with Tuesday.

Rupee, however, weakened against euro by 4 paisa, but recorded a whopping gain of Rs 2.53 against a pound sterling during the period. On Friday, a euro was exchanged at Rs 113.89, while a pound sterling was valued at Rs 127.70.

Bullion

Gold price eased on Friday after creating a new record on Thursday. The fall on Friday is due mainly to fall in international price and fall in exchange rate of dollar on Friday. Domestic bullion market closed on Friday with gold price at Rs 25,505 per ten grams. Gold became dearer only by Rs 40 per 10 grams over the week.

Gold dealers had opened the market at Rs 25,465 per 10 grams on Sunday. As rupee slipped, gold price soared to Rs 25,550 per 10 grams on Wednesday and Rs 25,600 on Thursday. But it fell by Rs 95 per 10 grams overnight on Friday amid appreciation of Nepali currency vis-à-vis dollar.

The price of silver, however, continued to soar and touched a record high of Rs 437 per 10 grams on Friday. As Nepal meets domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
Source: Republica

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Gold jumps to record high

Gold price jumped to record high, touching Rs 25,550 per 10 grams (Rs 29,800 per tola) in the domestic market on Monday. Bullion dealers said the increment has put off buyers on a shopping spree and threatened to hit business during the upcoming festive season.

The yellow metal became dearer by Rs 215 per 10 grams on Monday, compared to Friday when the market closed last week, and gold dealers attributed this jump to the devaluation of Nepali currency vis-à-vis US dollar.

Tej Ratna Shakya, president of Nepal Gold Silver Dealers Association (NEGOSIDA), said the international price of gold on the day had eased by about 50 cents per troy ounce compared to Sunday. "But still the domestic price shot up because Nepali currency weakened against dollar on the day," he stated.

However, knowledgeable people stated that Monday´s price hike was a foul play by the association, because Nepali currency actually had gained, and did not lose, as dealers claimed, against the dollar on the day. Foreign exchange records of Nepal Rastra Bank (NRB) too shows that Nepali currency gained 12 paisa against a dollar, compared to Sunday, and dollar was exchanged at Rs 77.85 on Monday.

Experts, however, agreed with dealers that Nepali gold consumers are presently bearing the twofold brunt of currency upheavals. For instance, gold price in the international market has soared because dollar has slipped against major rival currencies like Euro and Yen, and owing to this volatility, investors have preferred to switch to gold, thereby causing its price rise.

Contrary to this global trend, dollar has gained against Indian currency, with which Nepali rupee is pegged, over the last few days till Sunday. For Tuesday also, the central bank has announced that rupee will weaken by 47 paisa per dollar compared to Monday. “While former raised the international prices of gold, latter is making imports further expensive for Nepal,” said Shakya, who added that the rise in prices has dragged down the sales of gold in the domestic market.

According to NEGOSIDA, buyers have taken wait and watch policy since the last ten days when the prices of gold started to go up. "There are lots of enquiries but real purchase has gone down since the prices rose,” said Shakya.

Nepal´s bullion market becomes most vibrant during marriage seasons. Festive seasons like Teej, which was recently celebrated, and Dashain and Tihar, which are round the corner, are other major business days for dealers.

Given the sound growth in sales, which touched as much as 15 kg a day during Teej festival, dealers had anticipated the business to maintain this momentum. “But because of the price rise, sales has dropped to about 10 kg a day these days,” said Shakya.

Under normal circumstances, NEGOSIDA says consumption of gold in Dashain and Tihar increases by at least 25 percent over sales recorded in any regular business days.
Source:Republica

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Rupee gain, gold price stable

The Nepali currency appreciated against the US dollar this week, as India, with whose currency the Nepali rupee is pegged, recorded a surge in foreign investment inflow, reducing the demand of the greenback there. Sharp rise in the international price of gold, however, nullified the impact of the rupee´s gain and gold prices remained unchanged in the domestic market.

Currency
The Nepali rupee gained 50 paisa against a US dollar over this week. A dollar was exchanged at Rs 77.95 on Friday.

Nepal Rastra Bank had fixed the exchange rate of a dollar at Rs 78.45 on Sunday. As gold gained marginally against Indian currency, rupee shed 5 paisa on Monday and Tuesday. But it caught the appreciation trend gaining 50 paisa on Wednesday and additional 5 paisa by Friday.

Rupee, however, weakened against euro and pound sterling by Rs 1.49 and 83 paisa, respectively. A euro was exchanged at Rs 113.58 on Friday, while pound sterling was valued Rs 129.03.

Bullion

Despite witnessing sharp changes in intra-week trading prices, gold price remained unchanged over the week. Gold price was closed at Rs 25,335 per 10 grams on Friday.

Gold dealers had opened the market at Rs 25,335 per 10 grams on Sunday. As the international prices recorded sharp ups and downs, gold price dropped by Rs 45 per 10 grams on Monday, but soon rallied to Rs 25,380 per 10 grams on Wednesday. It again fell to Rs 25,140 on Thursday, but gained Rs 195 on Friday.
Source:Republica

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Rupee weakens, gold jumps over Rs 25k

Nepali currency continued its downward spiral against the US dollar over this week as well, as the greenback gained against the Indian currency to which the Nepali rupee is pegged. The currency´s drop along with the rise in the international price of gold, on the other hand, caused the yellow metal to jump sharply in the domestic market over the period.

Currency

Despite initial gain, the Nepali rupee weakened by 32 paisa vis-à-vis the US dollar this week. One dollar was valued at Rs 78.77 per dollar on Friday.

Nepal Rastra Bank, the country´s monetary authority, had fixed the Nepali currency at Rs 78.45 per dollar on Sunday. Subsequent to a decline in the value of the greenback against Indian currency, the rupee gained against US dollar on Monday by 30 paisa. But it caught a devaluation trend from Tuesday, dropping to Rs 78.38 per dollar Wednesday and losing a further 28 paisa against the greenback Thursday.

The rupee gained against the euro and pound sterling by 24 and 31 paisa respectively over the week. One euro was exchanged at Rs 112.18 Friday, while one pound sterling exchanged for Rs 127.43 the same day. Going by the open market exchange regime, the rate varied marginally among the commercial banks.

Bullion

Gold became more expensive by Rs 86 per 10 grams on Friday compared to Sunday, as international prices soared amid rising demand over the week. Dealers traded the yellow metal at Rs 25,250 per 10 grams Friday.

According to Nepal Gold and Silver Dealers´ Association (NGSDA), gold traded at Rs 24,390 per 10 grams Sunday. The price of the precious metal jumped Rs 44 per 10 grams on Monday, but it eased to Rs 24,305 per 10 grams Tuesday. The price rallied thereafter, jumping to Rs 130 overnight on Wednesday and further soaring by more than Rs 300 Thursday and an additional Rs 400 on Friday.

Silver too went up sharply to Rs 400 per 10 grams by Friday. As Nepal fulfills its domestic bullion requirements through imports, any fluctuation in international prices directly impacts domestic prices.
Source:Republica

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Gold sale likely to be brisk this Dashain

Jewellery purchases are mounting in the run-up to the festival season. Despite skyrocketing gold prices, people are eager to invest in gold. Mani Ratna Shakya, senior vice-president of Nepal Gold and Silver Dealers’ Association (NEGOSIDA) said that compared to last year they have observed an increase in gold transactions in the local market.

“According to the annual report of gold transaction last year, on an average there was a fall of 6 kg per day,” said Shakya. He added that this year gold transaction is quite high. “There was a transaction of around 15 kg per day during Teej and we are expecting that the transaction during Dashain and Tihar will be 15-16 kg per day,” Shakya said.

According to gold dealers, fearful investors worried about a market correction after recent gains may have been investing in gold. Other investments here are also being viewed as expensive, so people are opting to invest in gold. September is traditionally a seasonal highpoint for gold, said Shakya.

NEGOSIDA said that this week gold surged to cross Rs 29,000 per tola. Gold on Sunday got traded for Rs 25,250 per 10 gram (Rs 29,450 per tola) and silver traded for Rs 400 per 10 gram. Gold prices have moved up Rs 860 in a week. The yellow metal opened at Rs 24,390 per 10 gram on Sunday. On Monday, the price per 10 gram of gold rose to Rs 24,435 but fell by Rs 130 on Tuesday to drop to Rs 24,305. Gold again rose priced to Rs 24,435 per 10 gram on Wednesday. It again rose by Rs 345 and got traded for Rs 24,780 per 10 gram on Thursday and closed at a high price of Rs 25,250 per 10 gram. In the international market, gold last Friday closed at $949.65 per ounce and this Friday at $987.80 per ounce.

Meanwhile, silver opened at Rs 386 per 10 gram on Sunday and continued to be traded for the same price till Tuesday. Silver rose by Rs 4 and amounted to Rs 390 per 10 gram on Wednesday. On Thursday, silver made another hike of Rs 4.50 and priced at Rs 394.5 per 10 gram. It closed at Rs 400 10 gram on Friday.
Source: THT

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Gold gets dearer as rupee falls

Nepali currency continued to lose value against US dollar over this week, as greenback gained against Indian currency with which Nepali rupee is pegged. The global bullion market, on the other hand, remained fairly stable, but gold price marginally went up in the domestic market as a direct impact of devaluation of rupee.

Currency

Despite initial gain, Nepali rupee vis-à-vis US dollar weakened by 37 paisa over this week. A dollar was valued at Rs 78.62 a dollar on Friday.

Nepal Rastra Bank had fixed exchange rate of Nepali currency at Rs 78.25 per dollar on Sunday. Subsequent to a decline in value of greenback against Indian currency, with which Nepali rupee is pegged, rupee gained against US dollar over the next three days and valued at Rs 77.93 per dollar on Tuesday. Rupee, however, spiraled downwards over the next three days, dropping to Rs 78.40 per dollar on Thursday and losing further 22 paisa against the greenback on Friday.

Likewise, rupee fell against euro by 66 paisa over this week and a euro was exchanged at Rs 112.10 on Friday. It, however, gained Rs 1.50 against a pound sterling over the week. According to NRB, a pound sterling was exchanged at Rs 127.41 on Friday.

Bullion

Gold price became expensive by Rs 45 per 10 grams on Friday, compared with the price on Sunday, even though its global price remained fairly stable over the week. Dealers, who traded the yellow metal at Rs 24,265 per 10 grams on Friday, attributed the rise mainly to the devaluation of currency.

According to Nepal Gold and Silver Dealers´ Association (NGSDA), gold was traded at Rs 24,220 per 10 grams on Sunday. The precious metal became cheap by Rs 40 per 10 grams on Tuesday, but it soon rallied to Rs 24,265 per 10 grams on Tuesday and was traded at that price throughout the remaining days of the week.
The price of silver remained constant at Rs 377 per 10 grams over this week.
Source: Republica
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No policy for gold jewellery export

Nepali gold jewellery has the potential to compete in the international market, but it is yet to become a major export commodity due to lack of infrastructure and policy for the sector. “As gold jewellery is not an exportable item till date, there is no authentic data about its export as it is exported indirectly through tourists and Nepalis staying abroad,” said Tej Ratna Shakya, president of Nepal Gold and Silver dealers’ Association of Nepal (NEGOSIDA). According to him, gold jewellery from Nepal has great demand abroad due to its ethnicity and design but until there is an infrastructure development policy the sector cannot take take up its export uin earnest.
In 2003, NEGOSIDA along with the government, conducted some skill development programmes for trained manpower and by 2008 a total of 100 people were trained, said Shakya. “Currently, we have only internal trade of gold jewellery though the designs of the jewellery manufactured here can compete in the international market,” he said adding that they are trying to coordinate with the government to run more skill development programmes that will give preference from the grass root level.
Gold in Nepal is mainly imported from Dubai, Hong Kong and Australia. There are eight importers of gold in Nepal. “NIC Bank and Standard Chartered Bank are the two banks importing gold while ACE development bank is partially importing gold. ACE imports gold according to the order. There are five entrepreneurs in the market that also import gold in the domestic market,” Shakya said.

According to him, though the price of gold in the international market has fallen this week the price in the domestic market is rising. Gold opened at $953.85 per ounce this week and closed at $949.65 per ounce in the international market. The currency exchange rate on Sunday was Rs 78.10 per dollar, which went up to Rs 78.45 per dollar on Friday.

“The exchange currency rate of US dollar has increased compared to the Indian currency. This has pushed up our currency rate purchasing cost and due to which although international gold price decreased this week, there was no effect on the domestic market,” Shakya said.

Gold this week opened at Rs 24,065 per 10 gram in the domestic market on Sunday and increased to Rs 24,220 on Monday. Gold was traded for Rs 24,180 on Tuesday. With an increase of Rs 200 on the opening price, gold was traded for Rs 24,265 per 10 gram on Wednesday and Thursday and closed at the same price on Friday.

Meanwhile silver opened at Rs 374 per 10 gram and was traded for Rs 377 per 10 gram on Monday and closed on friday at the same price.
Source: THT
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Gold price up as rupee falls

Nepali currency continued to spiral down against US dollar over this week, as greenback gained against Indian currency, with which Nepali rupee is pegged, amid its growing demand there. The global bullion market, on the other hand, remained fairly stable, but gold became expensive in the domestic market largely due to the devaluation of local currency.

Currency

Nepali rupee depreciated against US dollar by 53 paisa over this week as increase in demand for greenback in India pushed its value upward. A dollar was exchanged at Rs 78.13 on Friday.

Nepal Rastra Bank (NRB), the monetary authority of the country, had fixed exchange rate of Nepali currency at Rs 77.60 per dollar on Sunday. Nepali currency appreciated briefly against greenback on Monday by 10 paisa, but it lost 90 paisa overnight and dropped to Rs 78.40 per dollar on Tuesday. Rupee rallied over the next three days though and settled at Rs 78.13 a dollar on Friday.

Unlike the past week, rupee fell against euro and pound sterling as well over this week. According to NRB, a euro was exchanged at Rs 111.06 on Friday, while a pound sterling was exchanged at Rs 129.21. Going by the open market exchange regime, the rate varied marginally among the commercial banks.

Bullion

Gold price became expensive by Rs 40 per 10 grams on Friday, compared with the price on Sunday, even though its global price remained fairly stable during the week. Dealers, who traded the yellow metal at Rs 24,090 per 10 grams on Friday, attributed the rise mainly to the devaluation of currency.

According to Nepal Gold and Silver Dealers´ Association (NGSDA), gold was traded at Rs 24,050 per 10 grams on Sunday. It became expensive by Rs 20 per 10 grams overnight on Tuesday, but prices receded to Rs 24,005 over the next two days only to bounce back following the reverse course of currency movement on Thursday and Friday.

The price of silver went down to Rs 370 per 10 grams on Friday, compared with the price on Sunday. As Nepal meets its domestic bullion demand through imports, any fluctuation in international prices directly impacts the domestic prices.
Source: Republica
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Rupee weakens, gold price up

Nepali currency that gained against the US dollar in the initial days of the week spiralled down in the latter part of the week, resulting in a net devaluation of the rupee against the greenback during the week. Weakening of rupee along with gross increase in the international price of gold made the yellow metal expensive in the local market during the same period.

Currency

Nepali rupee devalued against the US dollar by 86 paisa over the week as greenback gained against Indian currency with which rupee is pegged. A dollar was exchanged at Rs 77.74 per dollar on Friday.

Nepal Rastra Bank (NRB), the monetary authority of the country, had fixed Nepali currency´s exchange rate at Rs 76.88 a dollar on Sunday. As US dollar slipped against the Indian currency, Nepali currency appreciated against the greenback over the next three days and was valued at Rs 76.80 on Tuesday. But it started to dip from Wednesday losing 21 paisa on Wednesday and 73 paisa on Thursday.

However, rupee gained against euro and pound sterling through this week. A euro was exchanged at Rs 109.76 on Friday, compared to Rs 110.45 on Sunday, while a pound sterling was exchanged at Rs 127.70 on Friday, down from Rs 128.80 on Sunday.

Bullion

Despite initial drop, gold price became expensive by Rs 21.50 per gram on Friday, as compared to the price on Sunday. Dealers, who traded the yellow metal at Rs 24,220 per 10 grams on Friday, attributed the rise to the devaluation of currency as well as rise in the international prices of gold.

According to Nepal Gold and Silver Dealers´ Association (NGSDA), Gold was traded at Rs 24,005 per 10 grams on Sunday. As international price dropped, it became as cheap as Rs 23,875 per 10 grams on Tuesday. But it rallied gaining Rs 90 per 10 grams overnight on Wednesday and further soared by Rs 85 on Thursday and Rs 170 per 10 grams on Friday.

The price of silver too soared to Rs 390 per 10 grams on Friday from Rs 377 of Sunday.
Source: Republica
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Gold turns dearer despite currency gain

Nepali currency gained against US dollar over this week as greenback lost its value against Indian currency with which Nepali rupee is pegged. Despite drop in value of dollar, gold became expensive in the local market as its international prices jumped during the week.

Currency

Nepali rupee gained 91 paisa against a US dollar over this week and was valued at Rs 76.49 per dollar on Friday.

Nepal Rastra Bank (NRB), the monetary authority of the country, had fixed exchange rate of Nepali currency at Rs 77.40 a dollar on Sunday. While US dollar slipped against the Indian currency with which rupee is pegged, rupee consistently gained against dollar touching Rs 77 per dollar on Monday, Rs 76.67 on Tuesday and Rs 76.49 on Wednesday.

However, rupee devalued against euro and pound sterling during the week. Rupee weakened by 99 paisa against euro during the period and was valued at Rs 110.28 per euro on Friday. Likewise, it depreciated against pound sterling by 1.96 paisa and stood at Rs 129.99 per pound sterling on Friday. Going by the open market exchange regime, the rate may vary with the commercial banks.

Bullion

The price of gold went up by Rs 13 per gram this week, as rise in international prices of the yellow metal pushed its retail rates up in the domestic market despite appreciation of rupee vis-à-vis dollar. Gold was traded at Rs 24,135 per 10 gram on Friday.

According to Nepal Gold and Silver Dealers´ Association (NGSDA), Gold was traded at Rs 24,005 per 10 grams on Sunday. As international price dropped, it became as cheap as Rs 23,835 per 10 grams on Tuesday. However, the gold rallied overnight to Rs 24,135 on Wednesday and maintained the rate throughout the remaining trading days of the week.

The price of silver also soared to Rs 373 per 10 grams on Friday from Rs 364.50 on Sunday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.
Source: Republica
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Gold losing lustre

The domestic market of gold opened at Rs 24,090 per 10 gram last Sunday but closed at Rs 385 less with gold trading for Rs 23,705 per 10 gram on Friday. According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), improvement in the American economy has resulted in a fall in the price of gold in the international market and a fall in the trading price of gold in the domestic price as well. Gold was traded for Rs 24,090 per 10 gram on Monday while with an increase of Rs 45 on Tuesday gold priced at Rs 24,135. With a fall of Rs 260, gold dropped to Rs 23,875 per 10 gram on Wednesday, and with another decline of Rs 210 it dropped further to Rs 23,665 per 10 gram on Thursday. Gold closed at Rs 23,705 per 10 gram on Friday.

The price of gold in the international market last Sunday was $951 per ounce which declined to $937 per ounce on Friday, said NEGOSIDA.

Meanwhile, silver opened at Rs 363.50 per 10 gram last Sunday and remained so on Monday. On Tuesday, silver got traded for Rs 366 per 10 gram while with a fall of Rs 3, silver was traded for Rs 363.50 on Wednesday. Silver priced at Rs 356 per 10 gram on Thursday and closed at Rs 358.50 per 10 gram on Friday.
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Gold cheaper despite rupee devaluation

Nepali currency depreciated against US dollar this week as greenback gained against Indian currency with which rupee is pegged. Despite devaluation of currency, gold became cheap in the domestic market on Friday compared to Sunday due to decline in its international price.

Currency

Nepali rupee slipped 15 paisa against a US dollar over this week and stood at Rs 77.81 per dollar on Friday.

Nepal Rastra Bank (NRB), the monetary authority of the country, had fixed Nepali currency at Rs 77.66 per dollar on Sunday. As US dollar slipped against the Indian currency with which rupee is pegged, rupee gained against dollar over the next four days touching as high as Rs 77.40 per dollar on Wednesday. However, rupee spiraled down over the next two days, losing 41 paisa per dollar on Friday, compared to Wednesday.

Rupee appreciated against euro and pound sterling by Rs 66 paisa and 26 paisa respectively over the week. On Friday, a euro was exchanged at Rs 109.62 and a pound sterling at Rs 128.14. Going by the open market exchange regime, the rate may vary with the commercial banks.

Bullion

The price of gold went down by Rs 38.50 per gram in the domestic market this week, as the drop in the international prices of yellow metal dragged down its retail rates. Gold was traded at Rs 23,705 per 10 gram on Friday.

According to Nepal Gold and Silver Dealers Association (NGSDA), Gold was traded at Rs 24,090 per 10 gram on Sunday. As international prices rose, it became as expensive as Rs 24,135 per 10 gram on Tuesday. However, the price went down over the next two days, touching Rs 23,665 Thursday. Due to a slight rise in the global rate, its price inched up marginally Friday.

Contrary to gold, the price of silver soared to Rs 398.50 per 10 grams on Friday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.

Source: Republica
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Nabil, Sunrise prepare to import gold

With the growing interest of people to invest in gold, an increasing number of banks are starting to deal in the yellow metal as an additional banking product to offer to their customers. Nabil Bank and Sunrise Bank are preparing to import gold soon while a number of other banks like NIC Bank and Ace Development Bank are already doing so.

Nabil's chief executive officer Anil Shah said that his bank was preparing to import gold within the first quarter of the current fiscal year. "The bank's board has already decided to go for gold trading, and we are now seeking partners in the Middle and Far East for the purpose," he said. The bank will bring gold from Dubai as it is the most accessible country for Nepal, said Anupama Khunjeli who oversees the gold trading department at Nabil. "The bank will also give loans against gold," she added. "There is an increasing trend of investing in gold in Nepal," Shah said. "We want to tap this market."

Sunrise's CEO Kishor Maharjan said his bank was going to import gold within a month. "We are planning to import from 1.5 to 2 tons initially in a year," he said. He added that there were good prospects for earnings with volume sales although the profit margin was low. Soaring gold imports during the last two years also show how the gold market in Nepal is expanding.

According to Nepal Rastra Bank statistics, the import of gold soared to Rs. 11.71 billion during the first 10 months of the last fiscal year 2008/09 against Rs. 3.24 billion during the same period in 2007/08. Gold imports in 2006/07 were worth just Rs. 842.4 million. After the government removed gold from its list of prohibited imports on Feb. 16, 2006, financial institutions and other legally registered firms became free to import gold. The growing tendency of people to purchase gold as a safe investment is mainly responsible for the rise in import, said bankers.

Bijaya Satyal, chief executive officer of Commodities and Metal Exchange Nepal (COMEN) said that there were about 2,000 committed gold investors in COMEN. "The number is expected to grow by 20 percent every year," he said. COMEN is a paper gold market where trading is done with no yellow metal being physically transferred between the traders. According to Satyal, more than 100 kg of paper gold is traded daily at COMEN. According to gold dealers, about 25 percent of the imported gold is used for investment purposes while the rest is used to make jewelry.

Ace Development Bank CEO Siddhant Raj Pandey said that his bank had been importing gold for a year for trading on the paper gold market. He added that about 300 kg of gold had been traded during the year from Ace. Tej Ratna Shakya, president of the Nepal Gold and Silver Dealers Association, said that growing competition in importing the yellow metal would make the market competitive which would benefit all including retailers like him.
Source: eKantipur
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Gold dearer despite currency appreciation

Nepali currency gained against US dollar over this week as the greenback devalued against Indian currency with which rupee is pegged. Despite appreciation of rupee, sharp rise in the international price of gold made gold expensive in the domestic market during the period.

Currency

Nepali currency appreciated by 42 paisa against a US dollar over this week as greenback weakened in the Indian currency market. Rupee was valued at Rs 77.81 per dollar on Friday.

Country´s monetary authority Nepal Rastra Bank had fixed the exchange rate of a US dollar at Rs 78.23 on Sunday. Dollar recorded a nominal gain against Indian currency on Monday, subsequent to which rupee devalued by 2 paisa per dollar on the day. However, rupee gained a sharp 68 paisa against a dollar on Tuesday, when exchange rate of a dollar dropped to Rs 77.52. It slipped marginally over the next three days before settling at Rs 77.81 per dollar on Friday.

Contrary to gain recorded against dollar, rupee dropped against euro by 61 paisa and pound sterling by 70 paisa during the week. A euro was exchanged at Rs 110.84 on Friday, while a pound sterling was valued Rs 128.47 on the day. Going by the open market exchange regime, the rate may vary with the commercial banks.

Bullion

Gold became expensive by Rs 255 per 10 gram over this week and was retailed at Rs 24,175 in the domestic market on Friday. Dealers attributed the rise to increase in the global price of the yellow metal.

According to Nepal Gold and Silver Dealers´ Association, gold was traded at 23,920 per 10 grams on Sunday. But the precious metal continued to become dearer over the following days to Rs 24,090 per 10 grams on Tuesday and Rs 24,175 on Thursday.

Silver price also went up to Rs 362 per 10 grams on Friday. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices has a direct impact on domestic prices.

Stock

The market fluctuated throughout the week to close at 737.84 points with a nominal gain of 0.27%. The market was in correction mode after witnessing a sudden boost last week following the budget announcement.

The Commercial Banks sector (+2.38%) was the biggest gainer this week supplemented by increases in the share prices of Nepal Bangladesh Bank (+Rs 80) which is believed to have booked a healthy profit in the current fiscal year. Among other news in the sector, Bank of Kathmandu (+Rs. 40) was the key newsmaker. The bank held its special AGM on July 23 and announced its new management team led by Narendra Basnet as chairman of the board. Radhesh Pant, the previous managing director at Bank of Kathmandu, assumed his role from July 24 as the new CEO of Kumari Bank (+Rs. 80) which was another top gainer.

The Finance sub-index (+1.04%) was pushed up as right shares were declared by several finance companies, led by Lord Buddha Financial Institution (+Rs. 43) which declared 2:1 right shares. The remaining sub-indices, however, posted a decline. The ´Others´ sub-index (-5.18%) shed the biggest points as the sector was dragged down by Nepal Telecom (-Rs. 32). The Hydropower sub-index (-4.70%) was unable to maintain its big gains from last week and suffered a decline as shares of Butwal Hydro Power (-Rs 24) and Chilime Hydropower Company (-Rs.70) lost value. Insurance Companies sub index (-0.82%) also faced a dismal performance unlike the previous week. Malika Vikas Bank (-Rs. 819) share prices adjusted after the book closure for its 1:3 right shares to post the biggest loss among all companies pulling down the Development Bank sub-index (-0.68%).

Despite the lackluster performance of the NEPSE index, investor confidence sustained itself as the overall market turnover (Rs. 407,910,233) increased by 3.52% indicating that investors have stepped out of the sidelines to trade in the secondary market. Bulk trading of shares of Nepal Bangladesh Bank and National Hydropower was minimal this week signifying that the price hike of Nepal Bangladesh Bank shares was genuinely driven by investor interest. With the strengthening of the trading volume in the market and a positive investment climate, further corroborated by technical analysis charts which indicate a bullish divergence, it is expected that NEPSE will advance next week as more fourth quarter results trickle in.

Source: Republica
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Gold price looks up

The gold market this week closed on Friday at Rs 23,920 per 10 gram — Rs 345 more than Sunday’s opening price of Rs 23,575 per 10 gram.

According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), the demand for gold in the international market is increasing rapidly and pushing up the gold price even in the domestic market. Gold per ounce in the international market on Sunday was $913, and which on Friday priced at $937 per ounce in the international market.
Gold opened at Rs 23,575 per 10 gram on Sunday and gained Rs 45 to reach Rs 23,620 on Monday. It remained at the same price on Tuesday. On Wednesday, it rose by Rs 85 to reach Rs 23,705 per 10 gram. Thursday saw another increase of Rs 105, with gold going up to Rs 23,835. The domestic market for gold closed at Rs 23,920 per 10 gram.
Meanwhile, silver opened at Rs 356 per 10 gram on Sunday. However, with a fall of Rs 6 it priced Rs 350. Silver continued to remain at the same price till Wednesday. A slight rise of Rs 3 was observed with silver being traded for Rs 353 per 10 gram on Thursday. Silver closed at Rs 353 per 10 gram on Friday.

International gold price rising?

COLORADO: Suddenly the pressure from China to change the world’s monetary order is pressing. At the G-8 China asked for the forum to debate proposals for a new global reserve currency! They were largely ignored! China’s rising presence in the global economy ($2 trillion reserves now) and the threatening weakness of the US dollar is prompting China to act in this way and with speed. Not only the Chinese but the French finance minister and Central Bank president called for greater currency stability and a system to avoid piling up currency reserves as we see with the dollar. It is clear that more countries are objecting to the debasement of the US dollar through Trade deficits and Quantitative Easing. In March, the People’s Bank of China (PBoC) governor, Zhou Xiaochuan’s proposed that the Special Drawing Right, a synthetic currency, (but one aimed at being a basket of the world’s most traded currencies) be used as an international reserve currency that’s delinked from sovereign nations. PBoC said, “the IMF should expand the functions of its unit of account, Special Drawing Rights.” — Agencies

Source: THT
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Rupee depreciation makes gold dear

Nepali currency weakened against major convertible currencies including the US dollar over the week as the greenback gained against Indian currency, the only currency with which rupee is pegged. Rise in international gold prices coupled with currency movement pushed up the price of gold in the domestic market.

Currency

Nepali currency depreciated by 23 paisa against one US dollar over the week as the greenback gained in the Indian currency market. Rupee was valued at Rs 78.29 per dollar on Friday.

Nepal Rastra Bank had fixed the exchange rate of one US dollar at Rs 78.06 on Sunday. As dollar posted sharp gains against Indian currency, rupee was devalued at Rs 79.01 on Tuesday. Rupee, however, went on to appreciate over the next couple of days and was valued Rs 78.21 on Thursday, before weakening by 8 paisa on Friday.

Rupee also recorded a drop of Rs 1.24 and Rs 1.15 against euro and pound sterling respectively over the week. A euro was exchanged at Rs 110.10 on Friday, while a pound sterling was valued Rs 128.17 on the day. Going by the open market exchange regime, the rate may vary with the commercial banks.

Bullion

Gold became expensive by Rs 34.50 per gram over the week and was retailed at Rs 23,920 per 10 grams in the domestic market Friday. Dealers termed the rise as an impact of global gold price rally and weakening of rupee.

According to Nepal Gold and Silver Dealers´ Association, gold was traded at 23,575 per 10 grams on Sunday and continued to become expensive in the following days. It was priced at Rs 23,705 per 10 grams on Wednesday and Rs 23,835 on Thursday. On Friday also it gained Rs 85 per 10 grams.

The price of silver, on the other hand, dropped to Rs 353 per 10 grams on Friday from Sunday´s Rs 356. As Nepal fulfills domestic bullion requirements through imports, any fluctuation in international prices directly impacts the domestic prices.

Source: Republica
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Gold moody, silver stable

Gold price in Nepali market experienced ups and downs, responding to the exchange rates of Nepali rupee and US dollar this week. Changing international economics also supported the trend.

According to Nepal Gold and Silver Dealers’ Association (NEGOSIDA), gold price decreased by Rs 260 this week per 10 gram with the highest price on Wednesday (Rs 23,750) and lowest on Friday (Rs 23,405). Earlier, on last Friday, gold price closed at Rs 23,665 for per 10 gram.

Nepali bullion market opened at Rs 23,535 (per 10 gram) on Sunday and slipped to Rs 23,490 on the next two trading days. It gained Rs 260 on Wednesday and traded at Rs 23,750 per 10 gram, which was the highest rate of the week. In traditional Nepali measurement system, one Tola (11.664 grams) of gold was traded for between Rs 27,300 and Rs 27,700.

The precious yellow metal was traded on Sunday at Rs 23,535 (per 10 grames) while the price fell on Monday and Tuesday to Rs 23,490. Price hike was seen on Wednesday when gold was traded at Rs 23,750 per 10 gram. Thursday and Friday experienced fall and gold was traded at Rs 23,535 and 23,405 respectively.

International gold price had a fall of $19 between Sunday and Friday. The price of an ounce of gold was $933 on Sunday and $913 on Friday with some ups and downs during the week days. Back home, silver stayed stable throughout the week. Silver traded at Rs 356 (per 10 gram) from Sunday to Friday.

Source: THT
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