Duty slash, global trend bring down gold price to four-year low

Duty slash, global trend bring down gold price to four-year low

Rejoicing domestic jewelers who had been witnessing sluggish jewelry business after the earthquake, gold price stood at four-year low of Rs 48,000 per tola (11.664) grams in the domestic market on Wednesday.

Price of the yellow metal dropped by Rs 1,500 per tola compared to Tuesday’s rate to post a new record.

Prior to this, gold was traded at its previous lowest at Rs 47,500 per tola on August 8, 2011.

Two reasons have been cited for the record-breaking fall in gold price in domestic market —plummeting gold price in the international bullion market and reduction in import tax by the government of Nepal.

While gold lost its luster to $1,094.8 per troy ounce in the international market on Wednesday from earlier day’s rate of $ 1,134.30 per troy ounce, the government had slashed import tax of gold by Rs 100,000 per kg to Rs 320,000 in the budget announced for Fiscal Year (FY) 2015/16.

“Gold price is declining in international market with dollar standing strong and decline in the price of crude oil,” Mani Ratna Shakya, president of Federation of Nepal Gold and Silver Dealers Association told Myrepublica, adding, “As the result, investors are rushing in to sale gold and invest in share market, thereby making the metal cheap.”

Shakya also said that government’s decision to reduce import tax on gold this time has contributed a lot to bring down gold price in the domestic market.

Source: MyRepublica