Kathmandu, April 14

Gold price rose for the second consecutive week in the trading period between April 8 and 13 due to volatility in exchange rate of US dollar and unstable oil prices.

“The situation in Syria and the tension between the United States and China also caused fluctuations in the gold price,” according to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA).

The federation had set price of gold at Rs 57,900 per tola on Sunday, the first trading day of week. Bullion price remained unchanged for the next two days. On Wednesday and Thursday, however, the price of the precious yellow metal went up by Rs 500 a tola each day to be traded at Rs 58,400 per tola and Rs 58,900 a tola, respectively. On Friday, gold price fell by Rs 400 per tola to close the week at Rs 58,500 a tola.

FeNeGoSiDA had fixed rate of silver at Rs 740 per tola on Sunday and similar to gold, its price

remained stable on Monday and Tuesday. Over next two days, the price of the grey metal rose by five rupees a tola each day, to be traded at Rs 745 per tola and Rs 750 a tola, respectively. On Friday, silver price slipped by five rupees per tola to be priced at Rs 745 a tola.

Regionally, the premiums in top consumer China ranged between $6 and $8, little changed from last week.

“Prices have been on higher end. The market hasn’t changed too much in China,” Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong, told Reuters. “The stock market is more attractive than the gold market at present.”

The physical gold demand in second-biggest consumer India saw an uptick this week ahead of a key festival, although higher prices weighed on sentiment across the broader Asian markets, Reuters reported.

Next week, Indians will be celebrating the annual festival of Akshaya Tritiya, when buying gold is considered auspicious.

“Akshaya Tritiya is just around the corner but footfalls are still significantly lower than usual,” Fatechand Ranka, a jeweller based at Pune, in western state of Maharashtra, was quoted as saying by Reuters. “It is forcing industry players to give discounts on jewellery-making charges.”

Dealers in India were offering a discount of up to $2 an ounce over official domestic prices this week, down from $3 last week. The domestic price includes a 10 per cent import tax.

Meanwhile, appetite for physical gold in other Asian centres remained muted as high bullion prices kept most buyers on a wait-and-see mode.