Gold price down, silver increases
Kathmandu, October 10
The price of gold dropped by Rs 100 to Rs 50,200 per tola, while that of silver rose by Rs 15 to Rs 715 per tola during the trading week of October 4 to 9.
The speculations about the US Federal Reserve planning to hike the rates this year — which in turn would reverberate through financial markets globally, depress foreign currencies and possibly suck more capital out of emerging markets — has weighed on the prices of precious metals.
However, on Thursday, the Federal Open Market Committee released the minutes from the meeting last month, in which it had decided to hold rates near zero. Investors interpreted the minutes as further proof that US interest rates may remain on hold for the rest of the year.
Consequently, gold prices rallied in the international market on Friday to settle at a level not seen since late August, as expectations for a further delay in US interest-rate hikes weakened the US dollar and lifted the metal’s investment appeal. The prices for the precious metals are set based on the international prices.
In the local market, gold price was set at Rs 50,300 per tola on Sunday. On Monday, the price of the precious yellow metal slumped by Rs 200 to Rs 50,100 per tola and remained unchanged the next day. On Wednesday, it rebounded strongly by gaining Rs 500 per tola to trade at Rs 50,600 a tola.
However, gold price slumped by Rs 400 again to be traded at Rs 50,200 a tola on Thursday. Gold price remained the same on Friday.
Meanwhile, silver price rose by Rs 15 per tola during the week.
The white metal was traded at Rs 700 per tola on Sunday. On Monday, silver price dipped by five rupees to Rs 695 a tola. However, on Tuesday, the white metal more than recovered the previous day’s loss surging by Rs 20 per tola to be traded at Rs 715 a tola.
Silver continued on the upward trajectory on Wednesday as well, rising by Rs 10 to Rs 725 per tola. However, it shed Rs 10 to be traded at Rs 715 on Thursday. Its price remained the same on Friday.