Bullion price falls, silver rises
Kathmandu, April 1
The rise in demand of yellow metal, owing to uncertainty about Brexit talks, French elections and US President Donald Trump’s economic policies, was offset by firmer dollar in the week between March 26 and 31.
“There are a lot of uncertainties regarding the Trump reflation trade after the failure last week to overhaul Obamacare, and uncertainty in Europe with French elections coming up and the official start of Brexit negotiations,” Reuters quoted Carsten Fritsch, analyst at Commerzbank in Frankfurt, as saying. “The general picture is still positive (for gold) with dips seen as buying opportunities.”
British Prime Minister Theresa May filed formal Brexit divorce papers on Wednesday, triggering years of negotiations that will test the cohesion of the European Union.
A firmer dollar capped gains in gold after Chicago Fed President Charles Evans said he supported one or two more US rate hikes this year. Strength in the US currency makes dollar-denominated gold more expensive for holders of other currencies, thereby curbing demand.
In the domestic market, gold was priced at Rs 54,800 per tola on Sunday. Its price rose by Rs 200 a tola to Rs 55,000 per tola on Monday. On Tuesday and Wednesday, however, the bullion price fell by Rs 100 a tola to Rs 54,900 per tola and dropped Rs 300 a tola to Rs 54,600 per tola, respectively. The price of yellow metal recovered by Rs 200 a tola to Rs 54,800 per tola on Thursday, but slumped by Rs 600 a tola to close the week at Rs 54,200 per tola on Friday.
Meanwhile, silver was priced at Rs 795 a tola when the market opened on Sunday and its price remained the same the next day. The price of white metal went up by five rupees per tola each day for the next three days — to Rs 800 a tola on Tuesday, Rs 805 per tola on Wednesday and Rs 810 a tola on Thursday. However, silver price dipped by five rupees per tola on Friday to close the week at Rs 805 a tola.