Views Collection

The international commodity market has been witnessing huge fluctuations in the price of gold at present. It has really been very volatile at the moment because of the European economic turmoil. The see-saw between gold and dollar doesn’t seem to ease a bit at any point. The price of dollar is said to be inversely proportional to the price of gold in the international economy. But to a poor and developing countries like Nepal which is also a landlocked county, the theory doesn’t imply. When the price of dollar hikes the gold’s price also hikes here in Nepal.

When the price of dollar goes up, the local gold and silver traders have their own excuses of raising the price of gold in the market. There is no gold mine in the whole of the country and that they have to buy gold from foreign countries to meet the demands. To import gold, they need to pay in dollars and this is the equation. When the price of dollar goes up, the payment also increases and which is why the price of gold is increased in the local market even when the gold slides down in the foreign market. Therefore, whether the price of gold goes up or slides down the gold merchants in a developing country seem to make huge profit. In the last couple of months the price of gold has crossed the fifty thousand per ounce and to a great amazement, the demand of gold is way too much. The central bank has stepped forward on many occasions to control the price but in vain.