Kathmandu, August 27

The price of precious metals slumped in the week of August 21 to 26, with gold price down Rs 700 and silver falling by Rs 30 per tola.

The precious yellow metal had slid for five sessions, extending losses on Thursday after US jobless and durable-goods data beat forecasts and Kansas City Fed President Esther George said it was time for the Fed to raise rates gradually, according to the international media.

Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

A stronger dollar, used in most bullion transactions, has made selling gold more attractive in countries where currencies have weakened, including the United Kingdom, where voters in June elected to quit the European Union. The buybacks also put pressure on the precious metals, according to the Federation of Nepal Gold and Silver Dealers’ Association.

The price of precious metals in the domestic market is determined by their rates in the international market.

In the local market, gold was priced at Rs 59,300 per tola on Sunday. Its price tumbled by Rs 300 a tola and was fixed at Rs 59,000 per tola on Monday and remained the same on Tuesday. On Wednesday, the price of the yellow metal went up by Rs 100 per tola to be traded at Rs 59,100 a tola. However, on Thursday, gold price fell by Rs 400 a tola to be fixed at Rs 58,700 per tola. The yellow metal edged down Rs 100 again on Friday to be traded at Rs 58,600 a tola — 1.18 per cent lower compared to the price in which it was traded at in the beginning of the week.

Similarly, silver was priced at Rs 880 per tola on Sunday. Its price slumped by Rs 20 — the biggest fall in the week — to be traded at Rs 860 a tola on Monday. The white metal was traded at the same rate on Tuesday and Wednesday. On Thursday, silver price dropped again by Rs 10 to be traded at Rs 850 a tola and remained unchanged on Friday. Silver price fell by 3.41 per cent in the course of the week.