KATHMANDU(BullionStreet): Gold dropped further in Nepal Thursday, bringing some respite to the seasonal buyers as sales picked up in short time.

People are taking advantage of the dip in prices ( down by Rs 400 per tola) and are seen busy buying for the ongoing wedding season that kicked off 10 days ago.

Gold price had hit the new high of Rs 61,100 per tola in early trade Thursday, bringing some respite to the seasonal buyers.

Nepal Gold and Silver Dealers Association (Negosida) that fixes the price of gold in the local market, said the drop in prices have relieved the buyers psychologically.

However it said despite the price fluctuation, demand for yellow metal continued to remain high due to wedding consumption.

According to Negosida, the daily demand for gold has jumped to 40 kg with the onset of wedding season.

However, dealers get only 15 kg of gold a day as the central bank has capped daily supply quota at 15 kg.

Meanwhile, the price of silver went by Rs 5 per tola in the local market Thursday.Silver was traded at Rs 1,220 per tola on the day