Gold price down, silver stable
Kathmandu, November 3
Due to the US dollar gaining strength in international market price of gold has decreased while that of silver remained stable in trading week between October 28 and November 2.
The week-on-week review shows that gold price went down by Rs 200 a tola in the domestic market whereas that of silver was constant.
As per Federation of Nepal Gold and Silver Dealers’ Association (FeNeGoSiDA), gold was traded at Rs 60,200 per tola on Sunday. On Monday, gold price rose by Rs 100 a tola to Rs 60,300 per tola. However, it fell by Rs 100 per tola to Rs 60,200 a tola the next day. On Wednesday too gold price dipped by Rs 200 a tola to Rs 60,000 per tola. Similarly, price of the precious yellow metal decreased on Thursday by Rs 100 per tola to Rs 59,900 a tola. However, it reversed course on Friday increasing by Rs 100 atola to close the week at Rs 60,000 per tola.
Meanwhile, silver was traded at Rs 745 a tola on Sunday and Monday. Its price decreased by five rupees a tola to Rs 740 per tola on Tuesday and remained the same on Wednesday. On Thursday, its price again went down by five rupees a tola to Rs 735 per tola. However, on Friday, the price of the grey metal increased by Rs 10 a tola to close the week at Rs 745 per tola.
Gold slipped on Friday as US dollar regained some ground on back of strong American jobs data, putting the metal on track for its first weekly loss in five weeks as per Reuters. The dollar index gained after data showed US job growth rebounded sharply in October and wages recorded their largest annual gain in nine-and-a-half years.
“Strong data helped the dollar, which put some pressure on gold. The fact that the data is strong despite storm-related disruptions, suggests the economy is humming along strongly and that the Fed will continue to hike interest rates,” said Tai Wong, head of metals trading at BMO, Reuters reported.
The US Federal Reserve has raised interest rates three times this year and is widely expected to raise rates again in December. As per Reuters, gold is sensitive to higher US interest rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the
dollar, in which it is priced.