Bullion shines in domestic market

Kathmandu, March 7

The increasing threat of the coronavirus in the international share market boosted the appeal of precious metals in the trading week between March 1 and 6.

According to the Federation of Nepal Gold and Silver Dealers’ Associations (FeNeGoSiDA), gold was traded at Rs 78,000 per tola on Sunday and remained constant on Monday.

On Tuesday, gold price went up by Rs 300 a tola to Rs 78,300 per tola in the domestic market.

Starting Wednesday, the precious yellow metal set new records every single day. It first scaled past the previous historic peak to reach Rs 80,500 a tola on Wednesday, increasing by Rs 2,200 per tola. On Thursday, its price went up by Rs 200 a tola to Rs 80,700 per tola. Then on Friday, gold price reached a fresh all-time high of Rs 82,500 a tola, surging by Rs 1,800 per tola.

The gold price increased by Rs 3,300 a tola during this review period compared to the closing rate of Rs 79,200 per tola of the previous week.

Meanwhile, the price of grey metal was set at Rs 860 a tola on Sunday and it remained constant till Tuesday. However, on Wednesday silver price went up by Rs 20 per tola to be traded at Rs 880 a tola and it remained constant on Thursday. Then on Friday, silver price increased by Rs 10 per tola to close the trading week at Rs 890 a tola.

Compared to the closing rate of Rs 880 per tola in the last trading week, the silver price went up by Rs 10 a tola in the review period.

The FeNeGoSiDA has stated that the gold price is likely to increase till the outbreak of coronavirus is contained. The coronavirus has hit the international share market very badly at the moment. Moreover, the value of American dollar is increasing significantly, which has boosted the bullion price in the market during the review period.

According to Reuters, a price rally to record highs subdued physical gold purchases in India this week, driving bullion dealers to offer deeper discounts, while buying interest was minimal in top-consumer China and Hong Kong. “Gold prices rose more than one per cent and were on course for their biggest weekly gain since January, 2009 as the global spread of the coronavirus dimmed growth prospects and sent investors scurrying for safe-haven assets.”