Monday, May 20th 11:32 AM IST

Nepal central bank told to explain Gold shortage

# Nepal gold  # Negosida  # gold shortage  

Nepal bullion traders claim that the demand in the market is far more than the supply allowed by the central bank.

KATHMANDU(BullionStreet): Gold shortage continued to hit Nepali markets while price dropped below Rs 50,000 a tola.

The price of gold once again dropped today to reach a year low of Rs 49,099 per tola (11.664 gram), according to Nepal Gold and Silver Dealers’ Association.

The price of the precious yellow metal had touched a record high of Rs 62,000 per tola in the domestic market on September 14, 2012.

Meanwhile, Nepal's anti-corruption watchdog asked country's central bank on why customers were not able to buy gold during the wedding season.

The Commission for the Investigation of Abuse of Authority (CIAA) has asked Nepal Rastra Bank (NRB) to explain in three days, why there was a shortage even at a time when prices were low on the basis of complaints made by customers who said that they were not able to buy gold at the current price.

Bullion traders claim that the demand in the market is far more than the supply allowed by the central bank.

The central bank has allowed traders to buy 20 kg of gold a day for two months, till the wedding season,till mid-July from the earlier 15 kg per day.

However, with the drop in price and the wedding season, the domestic market is witnessing a shortage of gold.

The demand peaks to 40 kg to 50 kg a day during the wedding season, compared to 30 kg to 35 kg a day in normal times, according to Nepal Gold and Silver Dealers’ Association.

The Commission for the Investigation of Abuse of Authority has also asked the Bureau of Standards and Metrology on how to ensure quality of gold for customers.

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