China virus affects bullion price

Kathmandu, February 1

Coronavirus outbreak hit the economic sector worldwide and subsequently caused fluctuations in bullion prices in domestic market in trading week between January 26 and 31.

According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 75,500 per tola on Sunday and went up by Rs 500 a tola to reach Rs 76,000 per tola on Monday.

The price remained constant on Tuesday. Although on Wednesday, the bullion price declined by Rs 400 a tola to Rs 75,600 per tola, the price of the precious yellow metal went up by Rs 700 a tola on Thursday to be traded at Rs 76,300 per tola in the domestic market. However, on Friday gold price declined by Rs 300 a tola to close the trading week at Rs 76,000 per tola.

Gold price increased by Rs 800 a tola during the review period compared to the closing rate of Rs 75,200 per tola in the previous week.

Meanwhile, silver price declined slightly in review week.

According to FeNeGoSiDA, silver was priced at Rs 895 a tola on Sunday and went up by five rupees per tola on Monday to be traded at Rs 900 per tola.

However, on Tuesday silver wiped out the gain of the previous day as it declined by five rupees a tola to Rs 895 per tola.

On Wednesday, price of the grey metal slumped by Rs 25 a tola to Rs 870 per tola. However, its price rose by Rs 10 a tola each day on Thursday and Friday to close week at Rs 890 per tola.

Compared to its closing rate of Rs 885 a tola in the previous week, silver price rose by five rupees per tola in the review week.

As per FeNeGoSiDA, along with the panic regarding novel coronavirus epidemic, rebirth of tensions between Iran and the United States increased the appeal of the bullion in the review week. Likewise, the strengthening of the US dollar also affected gold price in the domestic market.

In the meantime, Reuters reported that gold prices rose on Friday and were heading for their best month in five as worries over economic growth due to the fast-spreading coronavirus boosted appetite for safe havens. The virus fears gripped financial markets, overshadowing the latest batch of upbeat corporate earnings.