Coronavirus epidemic spurs appeal of precious metals
Kathmandu, February 22
The trading period between February 16 and 21 was a record-setting week for gold.
Although gold price was steady in the first two days of the review period, it started hitting new records one after the other from Wednesday.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 76,500 per tola on Sunday and it remained constant on Monday. On Tuesday, gold price went up by Rs 200 a tola to be traded at Rs 76,700 per tola.
Hitting a new historic record on Wednesday, bullion price reached Rs 77,100 a tola after increasing by Rs 400 per tola.
On Thursday, gold price surged to another historic high of Rs 77,600 a tola, going up by Rs 500 per tola.
On Friday, price of the yellow metal went up by Rs 500 a tola again to a new peak of Rs 78,100 per tola.
Gold price surged by Rs 2,100 a tola during this review period compared to the closing rate of Rs 76,000 per tola last week.
Likewise, silver price also increased significantly during the review period.
According to the federation, silver was traded at Rs 885 a tola on Sunday and reached Rs 890 per tola on Monday, going up by five rupees a tola. Its price remained constant on Tuesday.
However, on Wednesday, price of the grey metal went up by Rs 10 per tola to be traded at Rs 905 a tola in the domestic market.
On Thursday, silver price went up by Rs 10 a tola again to be traded at Rs 915 per tola and remained constant on Friday. Compared to the previous week’s closing rate of Rs 880 per tola, the price of the grey metal increased by Rs 35 a tola during the review period.
The Federation of Nepal Gold and Silver Dealers’ Association has stated that the coronavirus epidemic has boosted the appeal of the precious metals, which are considered safe-haven investments during times of crises.
Thus, gold price has soared in the domestic market.
Reuters reported that global equity markets slumped on Friday as the fast-spreading coronavirus drove investors into safe havens, with gold hitting a fresh seven-year high and the yield on the 30-year US Treasury bond sliding to an all-time low.