Nepal Gold drops sharply despite short supply
Analysts said 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.
In line with global trends, Gold prices dropped sharply in Nepal when markets opened Monday.
A tola of gold dropped by Nepal Rs 2,300 in early trade to Rs 54,000 as investors around the world have been pulling out of gold and investing on property.
Analysts said 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.
According to officials of Federation of Nepal Gold and Silver Dealers Associations, the drop in price will not lead to drastic rise in demand for the yellow metal as customers will be on wait and see mood expecting further drop in prices.
Nepal's daily demand for gold stands at around 35 kg, according to the federation. But as the wedding season has started, daily demand will increase by another 5-10 kg.
Though gold price is expected to come down, customers willing to buy gold bars or coins have no reason to cheer about. Traders are not selling gold bars and coins, citing shortage of gold to meet demand for jewelries.
Most of the traders are not selling gold bars or coins because gold is in short supply in the domestic market. The mismatch between demand and supply has crated this situation, Association said.
Sumber : Google
No comments:
Post a Comment