Domestic price of precious metals increase

Kathmandu, December 15

As per the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) the domestic price of gold and silver increased significantly in the trading week between December 9 and 14 due to the Indian currency weakening against the US dollar in the international market.

According to FeNeGoSiDA, gold was traded at Rs 59,000 per tola on Sunday. On Monday, the price of gold went up by Rs 400 a tola to Rs 59,400 per tola. Similarly, the price of the precious yellow metal increased by Rs 600 a tola the next day to reach Rs 60,000 per tola. However, on Wednesday, it dropped by Rs 200 a tola to Rs 59,800 per tola. The price of the bullion continued with its downward trend on Thursday falling by Rs 300 per tola to Rs 59,500 a tola. It remained the same the next trading day to close the week at Rs 59,500 per tola.

Meanwhile, silver was traded at Rs 720 a tola on Sunday and increased by five rupees per tola the next trading day to Rs 725 a tola. It again rose by five rupees per tola to Rs 730 a tola on Tuesday and remained the same the next day. Moreover, the price of the grey metal again went up by five rupees per tola to Rs 735 a tola on Thursday. However, on Friday the price of silver witnessed no change to close the week at Rs 735 a tola.

The week-on-week review shows that gold price went up by Rs 1,000 a tola in the domestic market whereas that of silver increased by Rs 20 a tola.

Gold fell to its lowest in more than a week in the international market on Friday and was on track to mark its biggest weekly decline in more than a month, as the dollar climbed on robust US economic data ahead of a US Federal Reserve meeting next week, Reuters reported.

Spot gold eased 0.2 per cent to $1,239.59 per ounce. Earlier in the session, prices hit their lowest since December 4 at $1,232.39. The metal is down about 0.6 per cent so far this week.

US gold futures were down 0.3 per cent at $1,242.90 per ounce.

“The strength of the dollar has weighed across the complex. The key driver (of prices) in the next few sessions is going to be the markets’ expectations for the Fed,” said Suki Cooper, precious metals analyst at Standard Chartered Bank, according to Reuters.

Markets are awaiting the Federal Open Market Committee meeting on December 18-19, where the US central bank is widely expected to raise interest rates. The focus, however, would be on the outlook for 2019.

According to Reuters, gold price rose to a five-month peak of $1,250.55 an ounce on Monday, but has given up all the gains as the dollar strengthened against a basket of major currencies.