Gold price declines after hitting records
Kathmandu, January 11
Gold price in the domestic market has declined after hitting new historic records during the trading week between January 5 and 10.
According to the Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), the yellow metal was traded at Rs 75,500 a tola on Sunday, setting a new record in the domestic market. On Monday, it went up by Rs 500 a tola to hit another record of Rs 76,000 per tola. Due to the tensions between the United States and Iran, gold price surged substantially in the domestic market, FeNeGoSiDA stated.
On Tuesday, price of the bullion declined by Rs 500 a tola to be traded at Rs 75,500 per tola as the tensions between Iran and the US subsided. However, the next day the price of the yellow metal set another record in the domestic market reaching at Rs 76,500 a tola after going up by Rs 1,000 a tola. “Gold price surged significantly as Iran launched missiles on a couple of US military bases located in Iraq,” as per FeNeGoSiDA.
However, on Thursday, the gold price went down by Rs 1,000 a tola to Rs 75,500 per tola. On Friday, it again declined by Rs 900 per tola to close the week at Rs 74,600 a tola.
Gold price increased by Rs 100 per tola in the review period compared to the closing rate of Rs 74,500 per tola the previous week.
Meanwhile, silver price stood at Rs 900 per tola on Sunday and went up by Rs 20 a tola on Monday to be traded at Rs 920 per tola.
On Tuesday, however, it declined by Rs 20 a tola to settle at Rs 900 per tola. However, on Wednesday, price of the grey metal again rose by Rs 20 a tola and reached Rs 920 per tola. The next day, silver price went down by Rs 20 a tola to be traded at Rs 900 per tola. On Friday, it descended further by Rs 15 a tola to close the week at Rs 885 per tola.
As per FeNeGoSiDA, silver price fell by Rs 15 a tola in the review period compared to the closing rate of Rs 900 per tola the previous week.
FeNeGoSiDA has stated that a green signal for a dialogue between the US and Iran has led the bullion price to fall in the domestic market. Likewise, trade talks between the US and China is also giving hope to investors to invest in the stock market.
Meanwhile, Reuters reported that gold edged higher on Friday, and was on track to post a weekly gain for the fifth straight week, as fresh sanctions on Iran by the United States stoked uncertainty supporting demand for the bullion.
As per the international news agencies, the US dollar also fell from fourweek highs against the safe-haven yen and slid versus the Swiss franc on the possibility of renewed tensions in the Middle East.
Meanwhile, in India physical gold demand improved in the second half of the week as domestic prices slipped from a record high, though demand in other Asian regions was dented by a spike in global prices to their highest in nearly seven years, Reuters reported.