Gold holds steady, silver loses shine
Kathmandu, August 19
Gold price remained steady while that of silver dipped in the week between August 13 and 18.
Bullion price started to stabilise in the beginning of the week as tensions over the Korean peninsula waned and investors re-focused on fundamentals. Data on Wednesday showed the eurozone economy expanded by more than previously forecast in the second quarter, while annual growth in Italy was at its fastest since 2011.
The strong US retail sales data also slightly boosted expectations that Federal Reserve would raise interest rates for a third time this year. However, such hopes were dashed as Federal Reserve policymakers appeared increasingly wary about recent weak inflation and some called for halting interest rate hikes until it was clear the trend was transitory, according to the minutes of the US central bank’s last policy meeting, which was publicised later on Wednesday.
Moreover, US President Donald Trump fell out with business leaders over his response to the recent turmoil in Charlottesville.
Over in India, government banned exports of gold jewellery and other products above 22 carats in an attempt to reduce ‘round-tripping’, through which some exporters were availing export incentives by claiming export of gold items of over 22 carat purity with some value addition.
Nonetheless, gold jumped in the international market on Friday as the dollar retreated on political uncertainty in the US and a suspected Islamist attack in Spain boosted bullion’s safe-haven appeal.
In the domestic market, the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA) had set the rate of gold at Rs 55,500 per tola on Sunday. Bullion price fell by Rs 100 a tola to Rs 55,400 per tola on Monday and dropped by Rs 400 a tola to Rs 55,000 per tola on Tuesday. The price of the yellow metal remained stable the next day before recouping the earlier loss with a surge of Rs 500 a tola to be traded at Rs 55,500 per tola on Thursday and remained same the next day.
Compared to the previous week’s closing of Rs 55,400 a tola, gold price edged up by Rs 100 a tola in review period.
FeNeGoSiDA had fixed silver price at Rs 760 a tola on Sunday and its price dipped by five rupees per tola each day for the next three days — to Rs 755 a tola on Monday, Rs 750 per tola on Tuesday and Rs 745 a tola on Wednesday. On Thursday, however, price of the grey metal surged by Rs 15 per tola to be traded at Rs 760 a tola. Its price dipped by five rupees per tola on Friday to close the week at Rs 755 a tola. Silver was traded at the same rate on the last trading day of previous week.